Why is PMS all of a sudden transcoding local files?

I noticed this starting with 0.9.16.2 and also with 0.9.16.3 tonight. ALL of my files are being treated as remote files and being transcoded to 4Mbps 720. I have tried it on an iMac (wired) MacBookPro (wireless) and an i5 NUC (wired) using both the latest PMP and web player. If I pause the movie and manually set the file to original quality it plays fine.

What should I be checking?

@ersingleton said:
What should I be checking?

First of course the quality preferences in both clients:
Settings - Web - Player in Plex Web
Settings - Video in PMP

If you see that the local Quality is set to original, but the remote quality shows 4mbps, then your clients may assume that the Plex server is not in the local network.

Try to disable the ‘Secure Connections’ under Settings - Server - Network. (you probably have set it to ‘required’)

If the clients now behave as they should, you have found the culprit: your router.

Your router may perform a ‘DNS rebinding protection’ which usually is a good thing, but for secure connections to work in the local network, an excemption must be defined.
Otherwise your local clients can’t reach the server directly, which leads them to believe the server is remote.
https://support.plex.tv/hc/en-us/articles/206225077-How-to-Use-Secure-Server-Connections
(scroll down to ‘DNS rebinding’)

Thank you! Until you mentioned it I had forgotten that I changed the Secure Connections from preferred to required because it sounded like a good idea. Your answered should be a sticky or in the FAQ somewhere.