Connection to server not fast enough error-PMS transcoding files it shouldn't?

I have a “Synology” NAS (Xpenology on an old HP Mediasmart EX490 server). It’s running DSM 6.2-23739. The server has been dead nuts reliable for the last few years, but just recently I have been getting the following error when streaming to my Apple TV4:

Your connection to the server is not fast enough to stream this video.

I don’t use Plex all that often, so no Plex Pass. It’s been about a month since I last used it with success to my ATV. So checked the router (even rebooted), everything is hardwired, and ATV streams hd content perfectly from every other app. I did some googling and figured that there was something else going on.

I checked the technical details while trying to play a file I know I have played successfully. All my files are converted to MP4 with 5.1 AC-3. So I checked the detailed info, and for some reason Plex is trying to transcode the file:

Source: Transcod (my server name)
Video: Copy (H264)
Audio: Copy (AC3)
Player: AVPlayer
Transcode reason: This app cannot play this item. The reason is audio.channels limitation applies 6>2

Any ideas on what is happening? I checked all the threads on here that were remotely similar and can’t find any way to solve this issue. I went from a fully functioning Plex server to an unusable box and I didn’t touch anything. I have done all the google-ing I can handle on this and can’t figure out why Plex is trying to transcode something that the Apple TV can play natively. I even wiped out the server on the NAS and reinstalled, downloading the latest version from Plex

Server Version#: Version 1.18.7.2457
Player Version#: Apple TV V2.15 (14696)

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