Same for me. I did try with HW Acc enabled and disabled. Running "sudo cat /sys/kernel/debug/dri/0/amdgpu_pm_info" confirms that VCN is being used when Hardware Acceleration is enabled. I'm on stable Steam OS and Beta Client. Maybe it is expecting something from newer kernel/gpu driver on main Steam OS branch?
Honestly I'm not sure I just hope whatever it is gets caught before they migrate the beta branch into the stabke one and mess it up.
I tried it now on main branch of Steam OS and issue still persist with beta client. It is deffinitely something wrong with the client.
Nothing extracted yet.
Your system information
Please describe your issue in as much detail as possible:
I use the desktop mode steam client on my Steam Deck to stream from my windows gaming machine as it provides a smoother experience than within gaming mode (Steam OS). After the latest beta update I noticed whenever I try to stream a game the colors would be inverted (Blue would be yellow Red would be Green etc) but only on the Steam Deck. On my desktop the picture is displaying the correct colors.
After much testing I narrowed down the issue to Hardware Decoding not working anymore with the latest Steam Beta update and Desktop Client, it does not matter if I have it on or off the result is the same. Within SteamOS (gaming mode) if I disable hardware decoding I am able to reproduce the same results so that's how I know its not working on the Desktop Mode Client anymore. After opting out of the beta on the Steam Deck everything works fine again. I also tried updating my Windows Desktop to the latest steam beta client to make sure the issue was not from the Host side but it made no difference so its definitely a client side issue.
Steps for reproducing this issue:
I have attached two images showing the issue, first is with the stable steam client release and the second is with the beta release, as you can see colors are inverted and this only happens if hardware decoding is disabled.