Hardware transcoding not working in docker under ubuntu 18.04

Server Version#: 1.24.4.5081
Player Version#: 4.67.1Plex Media Server Logs_2021-10-16_05-16-51.zip (9.1 MB)
I’ve been using the official docker image for some time now, but I’ve never gotten hardware transcoding working. lspci indicates that quicksync is available:

00:02.0 VGA compatible controller: Intel Corporation HD Graphics P530 (rev 06) (prog-if 00 [VGA controller])
        Subsystem: Dell HD Graphics P530
        Flags: bus master, fast devsel, latency 0, IRQ 125
        Memory at de000000 (64-bit, non-prefetchable) [size=16M]
        Memory at c0000000 (64-bit, prefetchable) [size=256M]
        I/O ports at f000 [size=64]
        [virtual] Expansion ROM at 000c0000 [disabled] [size=128K]
        Capabilities: <access denied>
        Kernel driver in use: i915
        Kernel modules: i915

I’ve added my user to the video group, and passed /dev/dri to the container. Server logs show the following:

Plex Media Server.1.log:Oct 12, 2021 05:37:23.506 [0x7fb21d103b38] DEBUG - [Transcode] Codecs: hardware transcoding: opening hw device failed - probably not supported by this system, error: Generic error in an external library

CPU is a Xeon E3-1225 v5. I have Plex Pass, and enabled HW transcoding the UI. Have I configured something wrong, or does my hardware not support hardware transcoding?

For some reason the hardware transcoding requires elevated permissions. The only way I got it to work in my docker container is to set the environment variables below:

PUID 0
PGID 100

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