Thanks for the info. Not really surprising, and it's why FRIM is now the default encoder (but the update to a new version of BD3D2MK3D doesn't change your settings).
Also, hardware mode has always been picky, especially if your drivers are not up to date. I even wonder if I should set the software mode by default, instead of automatic. Given the low speed gain of hw mode and the additional security of sw mode, that could be a good thing.
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