This is one folder/files navigation restriction that we have also with Oppo.As I keep all my music audio and concert vids and docs in one directory and Kodi doesn't make that possible.
I clasify my library by Group/album and inside a Group folder I can find different albums in different formats. CD stereo, DVD, Bluray, Atmos files MP4, etc.
When navigating through an artist across his albums, if you find a different format, you have to navigate up... enter again by music instead of Video (or viceversa) and navigate down again.
You can override this using the Oppo App with his navigation, but then the 'remote' and the 'app' dont 'sync' and you may be stucked.
But with DUNE, and I guess other similar players you have no such restriction and you just enter a single top hierarchy. When hit a file the Player uses the needed program to decode the format found.