Xbox app does not show any 1080p quality options for transcoding. Jumps straight from 4K (source media isn’t 4K, neither is television hooked up to the Xbox) to 720p. Surely this cannot be right. I did find a Reddit thread from 3 years ago that suggests this has been an issue on some players for a while.
Server Version#: 10.0.25398.3864
Player Version#: 5.79.0