Not just 4k movies. 1080p blu rays wont play dts master 5.1 tracks. The stereo track and 5.1 dts is fine but as soon as I switch to dts master it bugs out
Plex displays that message when it wants to transcode video but (a) transcoding is disabled, or (b) the server is not powerful enough to transcode the video.
Have you disabled transcoding in the Plex Media Server settings?
Is there some other reason Plex would want to transcode the video - bandwidth settings inadvertently changed, unsupported video type, unsupported subtitle type, etc.?
The Shield should be able to transcode 1080p video, but is not powerful enough to transcode 4K media. It is also not powerful enough to tone map HDR to SDR (so disable tone mapping in the PMS settings).
When you connect two devices via HDMI, they perform a handshake, telling each other what video & audio formats they support (probably a lot of other stuff too).
It is uncommon, but sometimes the devices miscommunicate with each other, one device forgets what the other supports, etc.
Disconnecting / re-connecting the HDMI cable resets the interface and forces the two devices to perform the handshake again.