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With the old Behringer interface I use to get optical audio out of my PS5, the levels seem to be the same. For example, Spotify at 100% volume is identical coming from the website, windows app, or PS5 app. But yes, I do like to push the AGC to somewhere between +18 and +32dB.
Games are indeed very high dynamic range and require more lift than music. I like to stage my volume in this order of loudest to quietest: Narration Voice > Character Voice > Sound Effects > Music > Ambient effects. This makes it so when everything is quiet, the ambient audio is nice and present. Then the music pushes down the ambient when it kicks in. Then a Sound effect happens and lowers the music. If a voice happens during a bunch of crashing or gunfire, it'll push down the sound effects to let it through. It's like setting a priority of what sounds you find more important to hear over others. But the amount depends on the game itself.
Yeah, I've heard a couple people talk about increasing the volume on the lower dynamics helps with things around them in the game.