Since this is a translation of an overseas article, there may be some mistranslations.
https://www.flatpanelshd.com/news.php?subaction=showfull&id=1777877166
Valve's Steam Machine May Finally Get HDMI 2.1

Valve was originally unable to include HDMI 2.1 in its Steam Machine gaming console, but thanks to open-source driver work, it may now be able to fully support HDMI 2.1.
Last December, we reported on the controversy surrounding HDMI 2.1, citing Valve's explanation that it couldn't support HDMI 2.1 due to a lack of open-source drivers for Linux, after the HDMI Forum blocked open-source implementations.
Without HDMI 2.1, the gaming console would not be able to support 4K120 with HDR, VRR (variable refresh rate), and other high-resolution and modern video features.
Is it Solved?
According to recent reports from TechPowerUp and Videocardz, based on posts by AMD developers on the Phoronix forum, this issue appears to have been resolved. An AMD Linux developer has revealed that HDMI 2.1 is now working in the AMDGPU environment on Linux.
Initially, this patch focused on enabling the higher 48Gbps bandwidth required to support resolutions above 4K120, through FRL (Fixed Rate Link). They expect this patch to pass compatibility tests soon.
The next step is a "full implementation" of HDMI 2.1, including VRR, DSC (Display Stream Compression), ALLM, and other features, but no specific timeline has been provided.

Steam Machine's Perspective
This progress means that Valve's Steam Machine gaming console, whose launch has been delayed due to rising memory costs, may eventually support HDMI 2.1. This is because the device will use the AMD/Linux drivers in question.
Last year, Valve confirmed to Ars Technica that the Steam Machine had hardware capable of fully supporting HDMI 2.1. They also mentioned participating in AMD's work to "lift the block" on that aspect.
If the Steam Machine secures HDMI 2.1 support, it will become a stronger competitor against Xbox and PlayStation, but some questions remain, such as how well HDR will be supported.
▶ Source: https://www.flatpanelshd.com/news.php?subaction=showfull&id=1777877166