Local LAN Plex client only indirect connection, same device Plex for KODI works fine on LAN

Plex Media Server Desktops & Laptops
1

Server Version#: 3.67.1
Player Version#: 7.5.0.6642 (and previous versions)
Kodi Add-On #: 1.1.6.1

So I have a FireTV 2nd edtion 4k, this also happens on my Fire TV 3.

If I run the Plex client directly on the device it can only connect indirectly using LAN, transcodes everything.

If I switch over to the Plex Kodi Add-on, using the same device it connects directly and everything plays fine. No transcoding required.

I’ve read some topics regarding indirect connection on LAN but I can’t quite figure it out for me.
I will add that other plex clients (on my PC and Android TV) both can only connect via indirect mode. Using the Plex Add-on for KODI works fine on both.

So basically Plex Client is exhibiting the indirect.

Any suggestions on what I should look at?

Thanks

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