Finally got to the container station route and still not having luck with h/w transcoding. 
I’m able to run nvidia-smi from inside the container and it sees the GPU.
I selected the Nvidia card via the settings in Plex – transcoding still went to the CPU.
Stopped the container, updated HardwareDevicePath to /dev/dri/renderD128 in Preferences.xml, started the container, and same result – still not transcoding on the GPU.
Every permutation (GPU granted via container station, enabling DRI via container station, running with privileged mode or not) results in the same error when the plex container starts:
Apr 06, 2026 22:10:03.122 [139669170121360] ERROR - [GPU] Cuda function failed with error initialization error
Updated to add the logs once I enabled debug and verbose (though still not helpful):
Apr 06, 2026 22:41:38.761 [140553932983096] VERBOSE - [Req#79d/Transcode] [FFMPEG] - Rescanning for external libs: '/config/Library/Application\ Support/Plex\ Media\ Server/Codecs/74455c4-a119aa85fdef32b7dbfbf8a2-linux-x86_64/'
Apr 06, 2026 22:41:38.761 [140554000845624] VERBOSE - It took 0.0 sec to serialize a list with 1 elements.
Apr 06, 2026 22:41:38.762 [140553932983096] DEBUG - [Req#79d/Transcode] Codecs: hardware transcoding: testing API nvdec for device 'pci:0000:01:00.0' (NVIDIA TU117 [GeForce GTX 1650])
Apr 06, 2026 22:41:38.762 [140553932983096] DEBUG - [Req#79d/Transcode] [FFMPEG] - Loaded lib: libcuda.so.1
Apr 06, 2026 22:41:38.762 [140553932983096] DEBUG - [Req#79d/Transcode] [FFMPEG] - Loaded sym: cuInit
Apr 06, 2026 22:41:38.762 [140553932983096] DEBUG - [Req#79d/Transcode] [FFMPEG] - Loaded sym: cuDriverGetVersion
...
Apr 06, 2026 22:41:38.762 [140553932983096] DEBUG - [Req#79d/Transcode] [FFMPEG] - Loaded sym: cuGraphicsResourceGetMappedPointer_v2
Apr 06, 2026 22:41:38.762 [140554125028152] DEBUG - Completed: [192.168.1.10:62533] 200 GET /library/metadata/568?includeMarkers=1 (15 live) #7ab GZIP 28ms 3161 bytes (pipelined: 2)
Apr 06, 2026 22:41:38.762 [140553932983096] DEBUG - [Req#79d/Transcode] [FFMPEG] - Loaded sym: cuDeviceGetUuid
Apr 06, 2026 22:41:38.762 [140553932983096] DEBUG - [Req#79d/Transcode] [FFMPEG] - Loaded sym: cuDeviceGetUuid_v2
...
Apr 06, 2026 22:41:38.821 [140553932983096] ERROR - [Req#79d/Transcode] [FFMPEG] - cu->cuInit(0) failed
Apr 06, 2026 22:41:38.821 [140553932983096] ERROR - [Req#79d/Transcode] [FFMPEG] - -> CUDA_ERROR_NOT_INITIALIZED: initialization error
Apr 06, 2026 22:41:38.821 [140553932983096] ERROR - [Req#79d/Transcode] [FFMPEG] -
Apr 06, 2026 22:41:38.821 [140553932983096] DEBUG - [Req#79d/Transcode] Codecs: hardware transcoding: opening hw device failed - probably not supported by this system, error: Generic error in an external library
Apr 06, 2026 22:41:38.821 [140553932983096] DEBUG - [Req#79d/Transcode] Could not create hardware context for h264
If there were a problem with the container station runtime then it would be expected that nvidia-smi inside the container would not run, so this really, really seems like a Plex-specific issue.
This is so frustrating!