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I have not experienced this with any lossless transcodes and my friends streaming remote haven't said anything about it. What client are you using to watch media?
It was streaming locally from my 920+ directly to my LG tv using the official Plex app on the tv and the Plex docker container on the NAS with iGPU passthrough. Tried it in both mp4 and mkv formats. Since the tv doesn’t support DTS it was transcoding into (I think) AAC. When I would change the playback from DTS to any other codec (for files with multiple formats), the video would play flawlessly, it was just the audio transcoding.
I think every time I've heard about the plex smart TV app it has not been positive lol
Gonna be honest, I don't know the exact logistics behind plex transcoding and what resources it may or may not use on the client and I've never tried a smart TV app as a client. I'm really not in a place to comment on it. But I can attest to having no issues when transcoding lossless formats to windows or the Nvidia shield.