Aspect ratio all wrong on 1080p

I have a 2015 Shield Pro feeding a 4K TV. The Shield is set to Letterbox. If set to Original, then media is displayed at its original resolution in the middle of the 4K display (which is fine for 4K media, but not for lower resolutions).

Display Mode = Letterbox scales the video to use as much of the display as possible. It does not change the aspect ratio of the video.

See this post from a Plex employee: