There's something else you could try: under the Sound section in System Preferences, check if your Denon receiver is selected as the output device. Sometimes, even though a device is connected via Bluetooth, the system doesn't automatically switch the output.
Also, try resetting the Bluetooth module (Shift+Option and click on Bluetooth icon in the menu bar > Debug > Reset the Bluetooth module).
Things have got weirder. I eventually found that if I went to the radio mast icon top right in Music and clicked on the Denon there the music stopped playing from my internal speakers. But I couldn't hear it come out of my Denon's speakers. However, if I stood right in front of them, I could just faintly hear my music. So I turned up the volume to max on both the Denon and the MacBook and it was just about comfortably audible - but obviously not sustainable: it would have blown the circuits in the receiver to have it on max all the time, and if I changed to another source without lowering the volume it would blow the speakers.
This morning I went back in and found:
a) the two devices (receiver and headphones) I had paired last night were no linger listed when I click on the Bluetooth symbol in the menu bar. Nor are they listed in Bluetooth Preferences.
b) Bluetooth is on when I click on the menu bar symbol, but off in Preferences. When I click Bluetooth on there, nothing happens.
c) When I clicked on the radio mast symbol in Music the Denon was still there, but when I clicked on it it disappeared, and now the radio mast symbol has also disappeared on the Music page.
d) When I shift-option-click on the menu bar Bluetooth symbol it says Discoverable: off. No idea why, or how to turn it back on.
e) I tried re-pairing the receiver again, but it no longer shows up in Bluetooth Preferences when I have Pairing flashing on the receiver.
So it seems something very wrong has happened to Bluetooth on my laptop in upgrading to Monterey. And BTW the Debug mode you suggested doesn't work in Monterey, only in Big Sur. Apparently you have to go into Terminal in Monterey, which I tried, but the phrase I pasted in from the article I was reading didn't work.
Any more ideas?