I would not add a WiiM to the existing setup. Your Yamaha AVR has significant functional overlap with the WiiM Ultra both in terms on playing digital music sources, equalization, room correction, and subwoofer support. And your Yamaha AVR can process multichannel audio properly whereas I believe the WiiM Ultra will convert all audio to 2.0.
FYI, the center channel in a surround sound movie audio mix typically carries about 70% of a film’s key audio presentation, including dialogue, music, and sound effects.
If you use Roon or Tidal and if the Yamaha AVR does not have support for these, you would connect the WiiM Ultra to the Yamaha AVR by using either the coaxial or optical output on the WiiM Ultra to add these capabilities to your existing setup.
If you want to improve the sound quality of your existing setup, maximize the use of the existing room correction and equalization capabilities in your Yamaha AVR (free) and then add a subwoofer to the setup.
However if you insist on adding the WiiM Ultra to your setup, you could:
Connect your two video sources to HDMI inputs on the LG widescreen,
Connect the LG ARC output to the WiiM ARC input,
Connect the coaxial or optical output from the WiiM to a coaxial or optical input on the Yamaha AVR.
The Yamaha which will convert the WiiM digital (2.0) signal to analog, create a center channel output from the 2.0 signal, and output the three channels to the Klipsch speakers.