Wondering if anyone has a "best practice" for pealing IP traffic off (in this case an AppleTV) and routing all the traffic across a Wireguard tunnel.
Not sure what you mean by "pealing [sic] IP traffic off"; but when I need source-based routing, I prefer using rdomain(4)s and rtable(4)s. wg(4) is even rtable-aware. Now I am not in a position to anoint something as "best practice", but I couldn't be happier with my setup.
It's like the traffic gets dropped (MTU issue?).
MTU should always be taken into consideration. The default MTU for wg is 1420, so any traffic that is sent through the WireGuard tunnel directly or indirectly should be sent from an interface with MTU less than or equal to that value.