“Direct playing” just means the source file is entirely compatible with the client device and doesn’t require any transcoding/re-encoding by the server, it doesn’t really tell you whether the client is using software or hardware decoding to play it. I’m guessing it’s probable that a Jellyfin server could still report “direct playing” even if the client is using software decoding to play it. However, if the client device is something like a smart TV or something with a more locked down OS, and the maintainer/manufacturer removes support for a codec from that device, you may show more transcoding action on your server for things that previously just direct played because smart devices like that may not have support for software decoding, or may not have the horsepower to try even if they still have the codecs installed.
“Direct playing” just means the source file is entirely compatible with the client device and doesn’t require any transcoding/re-encoding by the server, it doesn’t really tell you whether the client is using software or hardware decoding to play it. I’m guessing it’s probable that a Jellyfin server could still report “direct playing” even if the client is using software decoding to play it. However, if the client device is something like a smart TV or something with a more locked down OS, and the maintainer/manufacturer removes support for a codec from that device, you may show more transcoding action on your server for things that previously just direct played because smart devices like that may not have support for software decoding, or may not have the horsepower to try even if they still have the codecs installed.