Yes maybe you better stop listening to randos. Receivers having problems with Xbox Series X as well, if you were following the news:
Yes. With Series X, but not with PS5 and NVIDIA 3000-series GPUs (*).
Maybe you want to do your research before posting.
There are around 60000 FRL patterns. Only 12 are bugged
in the HDMI 2.1 chip from Panasonic Solutions. Unfortunately
the Series X is also using those while PS5 and NVIDIAs latest GPUs do not.
(*) NVIDIA GPUs are working just fine when connected to a Denon AVR
even though it was first mentioned that they also would not work. But
this has been proven false. The only problem left with NVIDIA GPUs is
a bugged Hot Plug Detect. But this is a NVIDIA problem that
will be fixed in a future drive update. Usually the HPD should occur every
time you trigger a new handshake. But the 3000er series only does this HPD
one single time. This is "deadly" for AVRs.
Which is why you are getting issues after triggering a handshake
when a 3000er series GPU is connected to such an AVR.
tl;dr
No, PS5 is working just fine when connected to a Denon AVR.
Edit:
As can be seen in this picture 120 Hz is only supported with YUV422 engaged.