Plex transcodes media which is within published specs

Plex Players Gaming Consoles
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Plex is transcoding video sent to my Xbox One. I have a NAS, so transcoding is really bad. My media has the following specs:

 

Container: mp4

Codec: H.264

Audio: AAC 2.0 and AC3 5.1

Bitrate: Various, but all well under 20 Mbps (confirmed in Plex itself)

 

Why does Plex still transcode? 

 

The FAQ states "Content matching the following can usually be Direct Played:". Usually? What are the exact specs and conditions? 

 

My sources are MKVs ripped from blu-ray. I use Handbrake to produce the mp4 files. 

 

Thank you for your help. 

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Doesn't the app have 'Quality' settings?   If it does (as it should), what are your quality settings currently at?

Do you have subtitles which need to be burned-in?

If the client quality settings are lower than that of the source material,  Plex will transcode regardless of the format, container, and bit rates contained therein.

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