Even if I need to re-encode the files I'm unsure how to do that and still retain the 4K resolution, as all problems would be solved this way given that my TV can handle the HVEC files.
Oh and my iMac is serving as the Plex Server, everything else connected to it are clients.
I believe if you had a 4K HEVC file with a Dolby digital soundtrack (AAC) it would play natively on the Xbox one s and in 4K. Pretty much any other audio track would need to be transcoded by your plex server before being played on the xbox.
As you have discovered transcoding 4K HEVC is not working for you as your iMac can't do it fast enough, at least this is what it sounds like is going on. From what I can find even though High Sierra will introduce hardware decoding for your iMac this may not be implemented into the plex media server so might not actually help going forward.
You could probably re encode the files with Dolby digital audio and passthrough the video part. As I said before if I was determined to play 4K HEVC files, today, I would buy something like the nvidia shield which would not have this issue. Plex is great but at the moment I'm not sure 4K HEVC is really a good idea unless you have a client capable of playing it natively. If the Xbox one s can't play even DTS natively then it's a pretty poor solution.