PMS HDR -> SDR Tone Mapping with Intel quicksync

Have you verified the video is actually transcoded using your iGPU?
If there’s some subtitles that need to be burned into the video stream, Plex will not use the iGPU (as that can only transcode the video stream as-is).

What information is showing in the “now playing” tile for that playback on the Plex server dashboard?
Exemplary screenshot from the "now playing" section