I was wrong. The main culprit was that I had enabled hardware acceleration. And when I downgraded all the way down to 1.29, the hardware acceleration checkbox became unchecked by itself and that is what fooled me into believing that 1.29 works, whereas all newer versions didn’t. Once I realized that, I upgraded back to the latest 1.40.4, disabled both hardware acceleration checkmarks, and now Live TV works fine.
Note: My CPU does support Quick Sync hardware acceleration (older Intel i3-4030U). So I don’t know why enabling that feature would break Live TV. So this may still be a bug in PMS. But the workaround to disable hardware acceleration seems to work for me.
EDIT: Hardware acceleration needs to be turned off for OTA (DVB-T2) only. It works fine for cable (DVB-C). Curious.