Sound output from TV to Denon AVR-X2400H

Just got a new Sony X85J TV.  Using the HDMI ARC connections.  Volume works but I have to turn the TV volume up as high as it will go then turn the volume up on Denon to what I would consider abnormally high level (~80%) to get the sound to be what I would consider normal listening levels.  Am I mis-configured?

I also have decent external DAC hooked up to the Denon I use for streaming music. I suppose I could go optical out of TV to DAC?