My typical workflow for adding new video content to my library is:
Purchase and download item from iTunes
Convert downloaded file from m4v to mp4
Move converted file to PMS directory
In the conversion process, I copy all the video, audio, and subtitle streams as they are. When I play the item in the Plex app for Xbox One and select the TX3G subtitle track, no subtitles ever appear.
I’m not sure if I’m something doing wrong or if maybe Plex for Xbox doesn’t support TX3G subtitles? I’m not even sure how to troubleshoot.
Currently the only way the Xbox One app supports subtitles is via burning them into the video stream using transcoding. There are two things I could see that may be causing issues for you in this regards:
The server isn’t powerful enough to convert video on the fly. (IE using a NAS as a server)
Even though you converted the file from m4v to mp4 the video stream is still DRM’d which is preventing the server from transcoding the file.