Apologies, I didn’t know you have a Nvidia GPU for other things.
I’ve seen cases where unsuspecting folks load everything they saw on YouTube in hopes it would work without, unfortunately, understanding what’s happening.
For this case,
You have the iGPU
It is a RaptorLake
PMS is seeing it.
The container is running in Privileged mode. (Important)
The only thing left I can think of
Stop the container
Go to where Plex Media Server is (under /config)
Remove the Drivers directory and the Codecs directory.
Start the container again.
PMS will download the drivers and codecs again as you start transcoding.
I didn’t noticed that on tv video qualoity is set to maximum and it wasnt trying to transcode but just forcing 4K. After adapting to fullHD it started working as it should