Based on what theguymadmax says, this appears to be a bug. Not sure if there is a work around other than manually converting the media to a different format.
Jellyfin 10.10.7 (Docker)
Ubuntu 24.04.2 LTS w/HWE
Intel i3 12100
Intel Arc A380
OS drive - SK Hynix P41 1TB
Storage
4x WD Red Pro 6TB CMR in RAIDZ1