I absolutely hate "smart" TVs! You can't even buy a quality "dumb" panel anymore. I can't convince the rest of my family and friends that the only things those smarts bring are built-in obsolescence, ads, and privacy issues.
I make it a point to NEVER connect my new 2022 LG C2 to the Internet, as any possible improvements from firmware updates will be overshadowed by garbage like ads in the UI, removal of existing features (warning: reddit link), privacy violations, possible attack vectors, non-existent security, and constant data breaches of the manufacturers that threaten to expose every bit of personal data that they suck up. Not to mention increased sluggishness after tons of unwanted "improvements" are stuffed into it over the years, as the chipset ages and can no longer cope.
I'd much rather spend a tenth of the price of my TV on a streaming box (Roku, Shield TV, etc.) and replace those after similar things happen to them in a few years. For example, the display of my OG 32-inch Sony Google TV from 2010 ($500) still works fine, but the OS has long been abandoned by both Sony and Google, and since 2015-16 even the basic things like YouTube and Chrome apps don't work anymore. Thank goodness I can set the HDMI port as default start-up, so I don't ever need to see the TV's native UI, and a new Roku Streaming Stick ($45) does just fine on this 720p panel. Plus, I'm not locked into the Roku ecosystem. If they begin (continue?) enshitifying their products, there are tons of other options available at similar price.
Most people don't replace their TVs every couple of years. Hell, my decade old 60-inch Sharp Aquos 1080p LCD TV that I bought for $2200 back in 2011 still works fine, and I only had to replace the streamer that's been driving it twice during all this time. Sony Google TV Box -> Nvidia Shield TV 2015 -> Nvidia Shield TV 2019. I plan to keep it in my basement until it dies completely before replacing it. The Shield TV goes to the LG C2 so that I never have to see LG's craptastic UI.
Sorry, just felt the need to vent. Would be very interested in reading community's opinions on this topic.
Not OP, but what you're referring to is called CEC control. Maybe just have a dig through your settings on both devices to check CEC is enabled.
LCD display
HDMI interface
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I am aware of the CEC settings and they are working - the TV will power off the device just fine using CEC and it has the ability to power it on (I can manually trigger this) but the TV does not send a power on command to the AVR automatically when the TV is turned on. This seems to be a known issue but I don't have a link to the forum discussion I found a while ago where others have the same problem.