I have actually raised this issue before in the past (see "Use HDMI AVI signalling" video option should only be used at SD resolution ) but that thread got a bit derailed by a discussion of some other, less clear-cut, situations. There is one case I’d like to raise again here which is absolutely clear-cut, and where the current behaviour isn’t correct.
This has to do with the “Display 4:3 videos as” setting (under Player/Videos), and specifically with the “Use HDMI AVI signalling” option. What this does is to tell the display to switch between 4:3 and 16:9 aspect ratio.
If the video is 480i, 480p, 576i, or 576p, and the output resolution is 480p or 576p, this option works correctly, signalling the display to handle the aspect ratio. In the case where the video is HD resolution (e.g. 1440x1080) this setting also works correctly, and doesn’t signal an aspect ratio change to the display, it just pillarboxes the video within a 1920x1080 frame.
Where things go wrong is if you’re watching an SD video upscaled. (Why would you want to do that? The video might be 720x480 resolution, with a 23.976fps frame rate - very common on Netflix. You could view it as 480p/59.94Hz; but you might prefer to upscale it to 1080p/23.976 or 2160p/23.976 so as to prioritise preserving the original frame-rate over preserving the resolution).
In this situation (e.g. 720x480 video output at 1080p) the Vero 4K+ upscales the video to 1920x1080 (stretching it horizontally), then tells the TV to use a 4:3 aspect ratio which compresses it again; so you get the correct aspect ratio on the screen, but only because there is double scaling involved.
To put it another way: at the moment, it chooses been using aspect-ratio-signalling for 4:3 SD and using pillarboxing for 4:3 HD, which are both correct; but it makes that decision by looking at the dimensions of the video file, when it should be looking at the output resolution instead.
Paging @grahamh as he has had some interest in related issues in the past.