Can you play the movie from a usb attached to your tv and using the built in media player (the one that came with the tv, not Emby)? My usb ports don't work with the Evolution Kit installed on my TV, but I can remove that if needed and I still have your file here. My guess is that you will still get the Type 1 error
What is supposed to happen is that if the Tv can't direct play the file for some reason then the Emby app has to transcode the unsupported file and that way everything plays without user intervention, which obviously isn't happening here
The movie plays with no problem from the USB on the Samsung build in media player.