It looks like it is trying to transcode but failing. Can you also share a ffmpeg log? And share how the container is configured? Did you pass the GPU into the container?
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