I agree with much of what has been indicated. I'll add that when the orcs stop to look for the elves they may spend a few minutes (DMs judgment) looking for the elves and help each other. If that is the case an argument can be made for the orcs to use their passive perception at advantage.
What if the elves wanted to lay an ambush for the orcs and has a few minutes to and assist each other with hiding. In my mind the rules indicate the elves can use their passive stealth with advantage.
I would also like to add that the OP should keep in mind other skills can also be used in the passive manner. For instance, I had a player try to interpret the interaction between an Earth cultist and a Galeb Duhr. I asked for the passive insight. I gave clear indication of what the intent of the earth cultist humanoid was and applied disadvantage to inside to determine the intent of the Galeb Duhr.
What if the elves wanted to lay an ambush for the orcs and has a few minutes to and assist each other with hiding. In my mind the rules indicate the elves can use their passive stealth with advantage.
I would also like to add that the OP should keep in mind other skills can also be used in the passive manner. For instance, I had a player try to interpret the interaction between an Earth cultist and a Galeb Duhr. I asked for the passive insight. I gave clear indication of what the intent of the earth cultist humanoid was and applied disadvantage to inside to determine the intent of the Galeb Duhr.