I've been using Jellyfin for roughly 5 years, most of my library are Blu-ray remuxes (50-100 GB) and I haven't had a single one fail to play. My setup is Apple TV with Infuse connected to a LG C9 with a modern Yamaha receiver.
Transcoding is a whole can of worms I chose to avoid by playing everything directly.
Transcoding is a whole can of worms I chose to avoid by playing everything directly.