One of your developers confirmed subtitles as an issue on a reddit thread, and they also replied to a related fix on GIST with comments on a confirmed subtitle overhaul they are working on.
The issue is related to burn-in, it seems. With certain hardware, Plex seems to assume that the burn-in requires software transcoding, even though it should be supported with hardware transcoding. Using external subtitle files seem to get around the issue. But embedded ones trigger it for certain hardware.
I know I’m bringing transcoding into an issue related to direct play, but I’m wondering if these issues are related.
This isn’t affecting everyone, but it is affecting a number of people, including me with my Quadro P1000 in my Debian server.
EDIT: Seeing below, it seems you are already aware of this. Praying you guys don’t have too rough of a release.