@arafiq, My configuration is very similar to yours since I selected your option #2. My Family Room LG OLED TV is connected to my LUXUL Router using an Ethernet cable running under my house in the crawlspace. When I added my Aurender Music Server to my living room, we ran an Ethernet cable (under the house) from the Aurender, in my living room, to a LUXUL XGS-1008 switch sitting next to the TV in my family room.
This means BOTH the TV and my Aurender Music Server are connected to the LUXUL switch that is connected to my router. As I stated before, a power-line adapter works if an Ethernet connection is impossible. In my case, running an Ethernet cable from the Aurender to the shared LUXUL switch box works perfectly and easily solved my problem. I stream music from Qobuz with no problems and it sounds great.
Please ALSO note that at the beginning I had issues with my LINKSYS and Apple Routers. The streaming music was distorted, the signal was dropping out and I had other streaming issues. I finally purchased the LUXUL Dual-Band AC-3100 Gigabit Router and it works great. I checked the router monthly for software updates and also re-boot it at the same time. When streaming from Tidal, Qobuz, etc. every component in the chain needs to be working perfectly. This includes the ISP (Internet Service Provider), cable modem, router, switch boxes, music streamers, cables and everything else.
If needed, ask your ISP to confirm your cable signal is running in the correct frequency range. My ISP needed to adjust my cable signal to be in the correct frequency range.