Was the consensus here that the box should be left at default resolution 1080p and 60 Hz and allow KODI to choose resolution?
The TV upgrades the incoming picture (4K X-Reality PRO™ upscales images to near 4K clarity and HDR. Our newly developed 4K HDR Processor X1 outperforms our original 4K Processor X1 with more real-time image processing power. It takes even non-HDR content to near 4K HDR quality).
It will be once CE moves to a newer Kodi base. The way resolution and refresh rate switching is handled has changed in newer Leia builds, it now uses a whitelist. With this whitelist, “Change refresh rate” should be set to “Always”.
I used wrong downscale definition. I mean lower resolution, for 720P video for example. If you have 720p25Hz video and your TV is set to 1080p 50hz than you see it as 1080p25Hz or 1080p50Hz on your TV.
With whitelist it possible to see this video in 720p resolution also and use TV upscale algorithms Whitelist Kodi PR
The point is when you have a 4K TV and your UI is at 1080P, when you play SD or 720P video, the box upscales from the content resolution up to 1080P and then the TV does the upscaling from 1080P up to 4K.
If you have Kodi switch to the content resolution, the box won’t do any upscaling at all, and the TV will be using its video processor to do the heavy lifting.