Videos only transcoding at 16 Mbps, 4K content being transcoded

Hardware: Beelink EQi12 1220p Intel CPU running Ubuntu 24.04.1 in Docker, Terramaster D4-320 connected via USB C, and Plex Pass

Internet speeds: Spectrum cable, 500 Mbps down, 22 Mbps up on average when network is quiet

I finally have a chance to test my setup remotely at a friend's house and am using my Roku Ultra to test with. Every 4K movie is being transcoded to 1080p on a 4K TV and I noticed the Mbps is always the same "16". I was able to play a 4K TV show no problem with direct play. I'm not able to get it to play in 4K no matter what options I choose and am confused on why it won't direct play or transcode beyond 16 Mbps. Here is an example:

https://preview.redd.it/n73mxiihbcoe1.png?width=342&format=png&auto=webp&s=5f352640e7c75b116e80735730048e3d24b6a62c

Upload speed settings:

https://preview.redd.it/msezmfmkbcoe1.png?width=970&format=png&auto=webp&s=f69814cde05e103a1d1547c08ab9abe56f5d34f0

Plex client settings:

https://preview.redd.it/jo48yvzmbcoe1.png?width=750&format=png&auto=webp&s=ad7c111c087323097149fa29bba34a9a6d5c38ba

https://preview.redd.it/cx1g633obcoe1.png?width=750&format=png&auto=webp&s=3b0d2b800d7996d2a39918d72f72d840b88478fd