Remote Play does not use HW decoding on 12th gen Intel Xe graphics

[Ray]

ISSUE
I have 2 separate 12th gen Intel machines. One desktop with UHD770 and one with 1260p with Xe Graphics. Both run the same software etc. And neither will use Hardware Decoding for Remote Play, although they can both use HW Encoding for remote play and HW Decoding works for all other programs.

OS
Windows 11 (22H2 - 22621.1928)

STEAM:
June 21st
(Beta June 29th also tested)

Intel Drivers 31.0.101.4502


STEPS
Stream any game to 12th gen Intel systems, default Host options.
Enable Detailed Performance Overlay for the Client
Check Decoding Method, shows "libavcodec software decoding".

EXPECTED
Some kind of Intel HW Decoding should be used instead.

With the same Host for Remote Play I can stream to an older Intel system (10th gen, UHD graphics) running same Windows & Steam versions but Intel driver 31.0.101.2125, HW decoding works.