Scaled Resolution on local content

I have started the process of converting some of my home DVD collection to MKV files so they can be easily accessed from channels dvr. I have very little experience in this area but I am hung up on something I was hoping someone may know how to resolve. I am using the program "MakeMKV" (have also tried DVDfab which also results in same behavior).

The two movies that I have tried both show a native aspect ratio of 1.78. When I play the MKV files from fire stick VLC media player everything looks great. If I upload the MKV files to channels dvr and playback using the same fire stick there are black bars on the sides and the picture is squished. I get:
Native Resolution: 720x480
Scaled Resolution: 1620x911
Aspect Ratio: 1.78

When watching the exact same file using an Apple TV on channels DVR I get:
Native Resolution: 720x480
Scaled Resolution: 1920x1080
Aspect Ratio: 1.78
On the Apple TV there are no black bars and the picture looks normal.

It should also be noted that when I watch an OTA SD broadcast on the same fire stick I get:
Native Resolution: 720x480
Scaled Resolution: 1920x1080
Aspect Ratio: 1.78

The issue is occurring on 2 fire sticks, and an android smart TV using the channels dvr app.
The issue does not occur on my AppleTV, AppleTV 4K, iPad, or channels DVR web interface on win 10 computer. Is this a problem with the MKV files or some kind of issue on the channels dvr side?

Thanks

Is the FireTV on hardware or software mode?

Yes thank you. this seems to work if I use the software method. The hybrid method doesn't show any video when using it. Unfortunately the software method makes other channels look pretty choppy. But I will just switch it from hardware to software when needed.

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