Hoping to save others a great frustration; I figured out why my Apple TV living room wouldn't react on HomeKit. It seems that all the other Apple TVs and other devices have been allocated to the house I had set up on my iPhone. And that included an Apple TV as a hub and a HomePod as a backup hub.
What I didn't catch was that when I deleted the HomeKit recording on my troubled Apple TV and then assigned it to a camera, it would actually connect to a defined home on my wife's iPhone. And only after I deleted that house from her iPhone and made sure it was connected to the house I created on my iPhone, the problem disappeared. And now Apple TV is visible and receptive in my home. The other thing in some notes was that I used multiple users on the Apple TV, and while I was trying to troubleshoot this, I logged in as a wife and happened to be the default user on that Apple TV. Once I changed the default user and added it as an additional user and made the configuration for HomeKit using my main login, everything started to align and work properly.
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