jellyfin/jellycon

What does the option "Direct file playback" do?

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What does the option "Direct file playback" do? It sounds very useful, but I cannot find any information about its purpose, so its hard to decide if I should enable or disable it.

Nothing. It was originally meant as a way to bypass the server and play media files directly from the source, but this is not a supported configuration and is no longer possible in the server. It just hasn't been removed from the settings yet.