Software transcode fallback when hardware not possible

I am wondering what the behavior is when using hardware transcoding, but reaching the stream limit on the GPU (for example, 3 on Nvidia).

Recently deployed a Channels server and have been putting it through its paces to make sure everything has been working right. It is being fed by a 4 tuner HD Homerun. Using an Nvidia GPU with a 3 transcode limit on Windows.

I did a concurrency test recently and had a really hard time getting a 4th client transcoding. The GPU would peg at 100% at 2 streams, but had no issues with the 3rd, but CPU never changed when trying to start a 4th stream. Since the CPU in the server is pretty good, I decided to disable hardware transcoding to see if the issue was a network bottleneck or something with the HD Homerun, but all 4 streams worked fine (albeit with 100% CPU usage of course).

I was expecting it to work like Plex, where if it runs up to a stream limit on the GPU, it switches over to software transcoding for subsequent sessions. Is that not its behavior; is it only hardware or software transcoding, but not both?

There is no fallback at the moment.

Can you submit diagnostics from your dvr after the failure with the fourth h/w stream attempt?

Sure. I won't be able to do another test for a day or 2, will send it then. Thanks!