When exporting h264 files in Media Encoder, ME seems to ignore the 'create sidecar' switch and instead burns the CC in. Stopping and resetting the export and then rechoosing 'create sidecar' seems to wrk. Also I've noticed that the bitrate information on the render screen in ME is often wrong. I'll export a clip at 38mbps (match source, adaptive medium bitrate) bt the window shows 2.5mbps. The eventual render is correct. This is on a M3 Pro with the latest release of PP and ME.
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