I still disagree with your assessment, because as you keep saying, the HW transcode issue only occurred when using the Shield for playback locally on Shield Experience 8.
I’m saying I was on Shield Experience 8, v1.25.x PMS, and HW transcoding didn’t work on any player. I tested with an iOS phone using cellular data (so it would transcode a much lower quality and test external playing).
I posted that issue and the logs in the other HW transcoding thread here;
I’ll no longer be able to reproduce issues as I’ve downgraded to v1.24 where everything is working fantastic.