Hello everyone, I wanted to share my experience with this, I hope it helps.
I was having the same issue with HEVC transcoding.
I have an older i7 X 980 that I use for my Plex server, 24GB RAM (I know, odd number, but that chipset has an odd memory channel configuration) SSD for OS, 4 HDD RAID 5 for video storage and a GTX 1050 for transcoding (only GPU in the machine).
I was using an old DVI monitor for local access (I usually run headless, but wanted local access for some troubleshooting).
I could encode h.264 in HW (via Plex) with no issues, but h.265 decode would not work.
I ended up fixing this by chance. I purchased and HDMI dummy plug to fix TeamViewer desktop issues I was having. This on it’s own didn’t fix my issue… but it was because the DVI monitor was plugged in.
Once I unplugged the DVI monitor, left the HDMI plug in, and rebooted the machine, Plex would transcode 100% on the GPU (video only of course).
Example:

I was wondering about this and realized that I ran into a similar issue with my Divinci Resolve Headless rendering rig. I needed a physical display on it that supported HDCP in order to use the advanced codecs. This could be a limitation in the drivers…
Low and behold, as soon as I plugged in the DVI monitor, HEVC decode would not work. Remove the DVI and restart Plex, worked great. Unplugged all monitor, HEVC failed to work.
Here are the HDMI dummy plugs that worked for me:
Others will probably work, I chose these because they support 4K as a dummy monitor and I wanted a “4K Desktop” in TeamViewer. Super Scientific 
Anyhow, nVidia’s Control Panel says it supports HDCP… and I have a feeling that may have something to do with it. Windows 10 won’t play high fidelity video content without HDCP in an attempt to limit piracy of high fidelity content (not effective, but that was their statement). The nVidia drivers must support this limit to be WHQL certified.
If this is the case, I find it odd that h.264 encoding/decoding works without jumping through these hoops… but this is what worked for me. Hope it helps someone out there.
Oh, one last thing. I did log into the machine with TeamViewer and set the “physical” desktop to 4k. I don’t know if that has any bearing on this, but I forgot to put that information in before 