Once again this is not an answer for me. It's the same issue. So I did some checking and here's the deal. Direct stream seems broken. That's where the problem is. The auto off setting may work to stop it chopping the ending of files but the bottom line is I cannot play a mkv file to the Apple TV without transcoding video and audio both.
If I set auto to off and I set the individual file to convert automatically it runs smoothly. But it shows transcoding video h264 to h264 and transcoding audio ac3 to ac3. If the file is set to original quality which is the only option for direct stream then it just chop chop chops away.
Now before anyone asks no it's not my wireless connection. I may on an ac network and can stream smoothly to many other devices. The appletv INTERNET speed is 170mbps so there's is no speed issue, I should be able to play twenty streams minimum to the same device.
As far as I am concerned plex on the appletv is still drastically broken and it make me sad there's is an accepted answer in this post hat simply doesn't cure the problems at all. If you check your server you'll see you guys are transcoding everything and that's not something that should be necessary.
Bring back direct play and direct stream settings and make the appletv work again without having it transcode everything. This is ridiculous. It was working great and was completely broken and not one dev seems to have even acknowledged this issue. There no longer seems to be a way to even set it to transcode audio only. That's a huge take out.
One final note too - it's very poor ui design to have choices for individual files which aren't present globally.
Look under settings - quality - and you see original or 20. In individual files you have a convert automatically settings.
At the end of the day the Devs have broken what was great. Mixed up the UI, taken away features, and generally made atv plex crappy.