Transcode on DVR not on plex

Server Version#: 4.1.6.7
Player Version#: any
Plex on windows 10, 24GB of RAM quad core Xenon.
Just installed the HDHOMERUN eXtend dual tuner that has transcode capabilty. I have it set for transcode highest setting. It looks like the plex server is still transcoding to the folders that were setup. Is there a way to have it use the HDHOMERUN or am IPlex Media Server Logs_2019-12-11_16-47-06.zip (4.6 MB) missing something?

Keep in mind that the HDHR can only trancode video. PMS handles the audio part, so PMS will copy the video from the HDHR and add in the audio.

Edit - That is what I see happening in your logs.

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