That should be the correct setting. I also think Andy is correct regarding cables, and obviously the more components in a video chain the more risk of something not connecting correctly given the sensitivities related to EDID, and HDMI issues in general.
I do acknowledge that some of these infrequent issues are frustrating to all of us, and I suspect most, if not all, of us have suffered from these video (or audio) dropouts during playback.
One of my systems in another house had a setup that was K Source > VP > Receiver > Display (and external speakers). I would on occasion get both audio and video dropouts, and not always at the same time. After many hours troubleshooting these issues I finally gave up and removed the VP and Receiver (for the external speakers) and sent the Source directly to the display (100" Sony flat panel). I have not experienced a single dropout of either audio or video after making the change. Obviously we cannot do that for all setups, and especially if we want the best audio in our rooms because at a minimum we need Receivers in the chain.
In the end, I decided to use the best components and cables available, setup the systems as best I can (including utilizing the help of others more skilled than me), and then live with the results, including the occasional dropouts. I'm just no longer interested in spending hours and hours to chase these infrequent issues, as aggravating as they can be during playback.
If someone is experiencing a lot of dropouts, that's obviously a problem, and the cause needs to be identified. One other possibility in these cases is a drive going bad. We tend to focus on the possible causes being discussed in this thread, but "read/write" errors on a drive can also cause dropouts and or video freezes or disconnects. This is why I favor having Support take a look on their end.
Jim