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You'll see that the desktop resolution is in the log.
I have it set to that resolution as it is a older projector and I wanted to use as much screen space as possible and keep it at the native resolution. Sadly this will not work. Fortunately Steam allows you to "limit" the resolution to 720p so while streaming games it should HW Decode. I have yet to test it beyond setting the desktop resolution to 1280x720, which does work, so I am unsure how it will react to every situation. I will reply later with more detail for any future searchers with this same problem as this was not something I came across At All when trying to fix the issue.