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Doesn’t the player itself handle the codecs, not the Plex Media Server?
Transcoding...
Since Plex is distributing software that can re-encode video, the codecs that comes with the software must be licensed for many of the codecs.
Here's an article that covers some of the shenanigans around h264... Now realize there's at least a dozen others as well that are likely just as screwy. https://jina-liu.medium.com/settle-your-questions-about-h-264-license-cost-once-and-for-all-hopefully-a058c2149256