Having problem with HW Transcoding TigerLake GPU

Server Version#: 1.40.1.8227
Player Version#: Multiple

Network. 1000mbit cable.
Server: Core i5 1135G7, 32GB ram. Just running Plex. No other stuff.
First, installed Ubuntu 22.04. Did the i915 enable file to get correct reading on the GPU.
In transcoding options menu it showed up as “TigerLake”
Reinstalled the machine with Win Server 2022 Datacenter. It shows up as"Intel Iris Xe"
Both acts same.

On both installs, HW transcoding does not give effect.
Running Plex app on PS4 Pro gives me 45-50% CPU usage and a realy bad shuttering
Running Plex app on Xbox One gives me 60-80% CPU usage and a realy bad shuttering
Running Plex app on Apple TV 4k gives me 50% CPU usage and medium bad shuttering.
After about 20 seconds playback it must load 5-8 seconds, then 20 seconds playback again…

Running Plex app on my Win 11 PC with RTX 4XXX card gives 1% CPU usage and great experinece. I guess the HW transcoding is not used since I found this in logg:
“Streaming Resource: Reached Decision id=2599 codes=(MDE=1000,Direct play OK.)”

Looking in the log for a Xbox/PS4/AppleTV happening I see this:
"[Req#12c5/Transcode] Streaming Resource: Reached Decision id=2599 codes=(General=1001,Direct play not available; Conversion OK. Direct Play=3000,App cannot direct play this item. Direct play is disabled. Transcode=1001,Direct play not available; Conversion OK.) media=(id=6637 part=(id=6637 decision=transcode container=mp4 protocol=dash streams=(Video=(id=14882 decision=transcode bitrate=2147483647 encoder=h264_qsv width=1920 height=816) Audio=(id=14883 decision=transcode bitrate=774 encoder=aac_mf channels=6 rate=48000) Subtitle=(id=14888 decision=burn languageCode=eng location=embedded))))

This led me to the conclution that I must be doing wrong. Since I get the same result on both Win 2022 and Ubuntu 22.04 and Plex finds the GPU.

Where am I failing?

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