On my Shield TV if I am direct streaming a video* (Video and Audio are both listed as “direct” on the info overlay) when enabling PGS subtitles the Video shows “transcoding” instead. When a movie is Direct Play instead it does not cause transcoding to occur when enabling PGS subtitles.
The previous non-beta version would just not display the subtitles at all when direct streaming, but it should not cause a transcode.
That’s correct. We can only support PGS or VobSub subtitles when Direct Playing the file. As mentioned in the original post, the video is being remuxed. I’m guessing the file container isn’t supported? What type of file are you trying to play?