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EDIT:
H.265/HEVC/High Efficiency Video Coding is new video compression standard that is succesor from H.264/AVC/Advanced Video Coding
From what I understood standard Nvidia option uses graphic acceleration to record video in standard h.264 while Nvidia HEVC means it uses also graphic accelaration but in h.265.
MP4 (NVIDIA NVENC) = mp4 file with video compression h.264/AVC
MP4 (NVIDIA NVENC HEVC) = mp4 file with video compression h.265/HEVC
If you want to know differences between HEVC and AVC here few links:
https://www.winxdvd.com/resource/h265-vs-h264.htm
http://x265.org/hevc-h265/
EDIT2:
Nope youtube doesn't support h.265/HEVC yet so it would be kinda pointless to upload such video with that compression:
https://mirillis.com/en/products/tutorials/action-tutorial-nvidia-nvenc-acceleration-h265-hevc-gameplay-recording.html
So unless you have video editor that supports HEVC and convert it to AVC it would be pointless to even record for youtube.
If I am mistaken in something please be free to correct me.
PS: Make sure you have Nvenc enabled under hardware acceleration and that you choosed MP4 (Nvenc)
No, I meant what I wrote in the title hence why I wrote it asking about the new Nvidia HEVC option which was introduced with one of the latest updates in May of this year.
Also H.265 isn't compatible with youtube yet so it's pointless recording in that format.
AVC: another name for H.264 codec, the most common and compatible video codec, also known as MP4 or MPEG4
Yes, I know. But MP4 is one the most common containers for AVC (of course there are others, like .MKV or .MOV).
However, an MP4 file can't hold every video format or codec. For example, an .MP4 file can't hold DivX, Xvid or MPEG2