For full TV's Game Mode feature-set (not even counting HDR), 4K or full HDMI 2.1a support may be required, even if the actual required bandwidth is much lower. Also use any online HDMI bandwidth calculator to see that even 1440p 165Hz (fastest OLED TVs right now) 4:4:4 10 bit (with HDR), requires 20.37 Gbps and 8 bit (=without HDR) still require 16.30 Gbps, so HDMI 2.1a (maximum of HDMI 2.0 is 14.40 Gbps).
The Steam Machine could support 4K monitors with 120 Hz, HDR, VRR and ALLM after all, because contrary to previous expectations, AMD is now working on Linux drivers that fully support the more modern HDMI standard.