Quality are converted, allthough settings are for direct stream

Additionally to the server remote connection settings, the iOS Plex app has its own bandwidth preference for remote connections. Verify that it is not limited to 2 mbps.

Another thing to check: is your server directly(!) accessible from the outside?
If not, Plex is reverting to the Plex relay connection – which happens to be limited to 2mbps for Plex Pass holders.
(1 mbps without Plex Pass)

See The Basics of Remote Access Troubleshooting