Hardware transcoding in PMS 1.43.1 is not working for some Arrow Lake CPUs.
See Hardware/GPU/Quicksync transcoding broken on Beta 1.43.1.10540.
If it was working on an earlier release, you may need to fall back until Plex gets the kinks worked out.
Also, Plex is looking for people to help with testing. If interested, see https://forums.plex.tv/t/hardware-gpu-quicksync-transcoding-broken-on-beta-1-43-1-10540/937145/112.