I have been using my Nvidia Shield's new features as soon as I got the latest update. Plex server has been running so great that I ended up buying a Plexpass and I'm thinking on ditching Kodi. But last night I noticed something that's pushing my OCD into overdrive. All my movies are 1080p, put Plex gives them to me at 720p. Almost all of the movies are played without any transcoding going on and I do not see an option to transcode at 1080p, but it does show options to transcode at 720p and below. My TV is 1080p ready and Kodi confirms that as well...Am I missing something?
Make sure the settings for the player/server are configured correctly for the highest quality. Additionally make sure pass through settings are configured correctly between your shield, receiver, TV and ARC if applicable.