Which client are you using? Are you switching the max bitrate during playback, or while it's paused?
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I'm using the android client. Default settings. I've tried switch the nitrate when paused and also while playing, bur same problem.
In order to see if it's client-side or server side, let's try another client. Try installing Jellyflix and see if it gives you the same issue when you lower the bitrate
I've finally identified the general problem: /dev/dri is not appearing in the container, so it looks like a docker based server side problem.
Glad to hear it. Should be relatively straightforward to fix it, now that you've identified the issue.