Transcoding errors starting 2-3 days ago

Do you mean you see this error in the Plex Media Server logs ?

Connection to tcp://127.0.0.1:32400 failed: Error number -138 occurred

The problem actually arises some time before this erorr starts

Best way to know when the issue arise is to open the Windows Event Log with event viewer

Start / Run / eventvwr.exe
Expand Windows Logs
Click on System
Click on Filter Current Log
Overwrite filter <All Event IDs> with 4227
That will show when the problem arises
You can change the filter to 4227,6005
and that will show reboots and the tcp error

I am coming to think that this was a recent windows change - but what I need to establish is how many library scans it takes to get this and how big are the libraries - (a reboot would clear the issue)

You can save copies of the 3 event logs and zip and send me and I will see if 4227’s are occurring

Application
System
Update

Server logs after a 4227 is logged by windows would show what was being done at the time