For my understanding the MDE module analyzes the content and makes the decision to which formats the transcoder will convert the streams.
It appears to me that now it gets activated only if the value set in the quality settings is below the average bitrate of the file. If I recall well previously it was getting activated whenever the quality was set to anything different than direct play.
I noticed this change because I have several h265 movies with a low bitrate and to play them (forcing transcoding) I just needed to set PHT to 20 Mbps. Now I have to lower the quality setting to something like 3 or 2 Mpps or the transcoder will not be activated.
If I get it right in your case this would make it impossible to transcode audio without transcoding video as well even if adding an additional higher quality value to the list.
Can you check if you get the same behavior now?
Hmm three things I would note:
1. (obligatory) h265 is still rather experimental.
2. I never found Plex to transcode needlessly, that is to say it always had a reason (or as you put it "activate whenever quality was set to anything different than direct play"). I found for example, Plex would transcode a video that has a max bit rate of ~30mb/s (and my settings allowed for 20mbps) but if the video clip bit rate was below 20mbps (and in a supported format) then it would just direct stream.
3. There is average bit rate and maximum bit rate (as I understand). Whichever bitrate value is used (I understand it to the be the max value - this is specifically relevant with how a ChromeCast is limited), the recognized value on your h265 may not exceed 2-3mbps and thus setting to 20mbps would just tell it to direct play video (disregarding audio at the moment). Perhaps in the past the Plex didnt recognize h265 codec as a supported playback and now does, thus your video clip no longer "needs" to be transcoding (rendering issues aside).
Regardless I am looking forward to testing this with a "MAX" option or perhaps a "50mbps" option.