From my limited testing it appears to work OK.
I still have 2 devices to test this on which I won’t have access to until later this evening so I’ll update with my findings.
Thank you for pushing through this fix.
EDIT: Tested on the iPad Mini 4 and this is now hw transcoding, although see Transcoding on iPad Mini 4 / direct plays on iPad 8th Gen - #10 by nickking360 as I’d like to know for what reason and when this changed. Thanks.