Video quality poor watching recorded tv show

Server Version#: 1.18.1.1973-
Player Version#: unk
After upgrading to this version the video quality is very poor, it looks like I am watching a low def show. I am streaming on my home network (hard wired) using my Xbox360 plex app which I have been using for over 2 years. Up until this update my video was excellent. Attached is a snapshot from the server while playing the video showing the video settings. Not sure when the video should be using transcode vs direct or what settings I can change to correct this issue.
PlexCapture

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