Let me expand on that.
there is a really nice wiki article about intel hw encoding with color table https://en.wikipedia.org/wiki/Intel_Quick_Sync_Video#Hardware_decoding_and_encoding
1.1. the color does not show in dark mode on mobile
1.2. Your CPU is under the Alder Lake, so HEVC 12b encode/decode and AV1 decoding. This means you can encode big things into HEVC 12b to save space and also play back AV1 without issues in the future.
my setup and experience
2.1. I have an i5-8400 so I encode everything too big into HEVC 10b. I sometimes watch with 4 other people, so i had to tweak the config a lot to make it work fine when 5 people are watching at once. From my experience, the jelly sometimes just puts everything into decoding the first stream while others just wait. I recommend just setting only 1 core per stream and only like 300s transcoder buffer.
2.2. playback devices do a lot, when using firefox, everything has to be transcoded except h264
on chrome, it usually just remuxes (mkv container is converted into something more compatible) easy on resources
when playing using a jellyfin client, it is played directly
dedicated GPU
3.1. I disagree with the dedicated GPU recommendation as long as you tweak the settings, you’ll be fine.
Test iGPU first, play around with it, see how many streams at once you actually have to serve.
The dedicated GPU is an extra investment for a start and a constant power consumer for later.
My guess is the 770 would be a bit better. Could not find anything that could compare the two based on video performance and not strictly on gaming/rendering. So my opinion is not to care about it too much.