FRC unsupported error only when using HW

I'm using the H264Encoder DirectShow library and notice a problem only when HW is enabled. When I make the call to MFXVideoPP::QueryIOSurf() I see a trace statement in the output window: FRC Unsupported. The return status code, however, reveals no error. But encoding does not work and later on down the pipeline an MFX_ERR_ABORT is returned from the call to MFXVideoSession::SyncOperation().

Now if i change Init to choose MFX_IMPL_SOFTWARE explicitly this error goes away and the encoding works as expected (but of course we are looking to use the HW capabilities of the computer).

Searching for FRC shows this is FrameRateControl, however I don't know why that would come up.

Analyzer and Tracer logs are attached.

System Specs:

Intel NUC

Graphics Devices:
    Name                                         Version             State
    Intel(R) HD Graphics 4000                    10.18.10.3958       Active

System info:
    CPU:    Intel(R) Core(TM) i5-3427U CPU @ 1.80GHz
    OS:    Microsoft Windows 8.1 Enterprise
    Arch:    64-bit