My Apple TV updated overnight to 18.2.1. I don’t see a 18.2.1 update for my HomePods yet, so they’re on 18.2. My ATV drops WiFi constantly unless I disconnect the HomePods as an audio source output.

The solution was to update the ATV to 18.3 beta 3 and leave the HomePods on 18.2.

This is mostly a PSA in case anyone else experiences the same issue. Reset my ATV before identifying the issue.