I've notice that under the audio and video tab on Apple TV, I don't see the option to connect to my other devices like my stereo.

They removed that option, you can only send AirPlay temporarily. Using your AppleTV remote, hold the “Home” button, the one that looks like a TV, and it will pop up an on screen menu, on the bottom right you can select your stereo, if it’s supports AirPlay.

But you will have to do it every time you turn on your AppleTV.

Leave feedback on Apple site, that’s the only way we might get it back, like it was before.

Hey there ROACH10,

Thanks for reaching out to Apple Support Communities. We understand that you're having some issues when trying to change your audio output. We're happy to provide some assistance.

Let's follow the steps outlined in this helpful resource to change the audio settings:

Adjust video and audio settings on Apple TV

We hope this helps.

Have a great day!