The server is transcoding down the H.265 video and absolutely murdering my i7 CPU. Xbox One X should be able to handle the codec for direct play, yes?
Please provide more details of the file you get get it from get info>view XML. Your server log will also show why it decided to transcode when the server started the transcode
Here is the xml data:
On first look that should be fine but we may be missing something. Can you enable logging on Xbox and then grab server logs after starting playback of that same file.