I installed Kodi 20/IPTV Simple on a Windows machine and found the exact same limited resolution playback (720p) so the Bug goes back to Kodi not LE. It is worth noting however if you ever post on the Kodi forum and so much as mention Libreelec you are likely to be attacked for trying to get support for LE on a Kodi forum, even if you have already found the same bug on Kodi (without LE). I therefore leave it in this forum's capable hands
If this is true, then why not report the Window form of the issue?
In general, to get the right developers to see an issue, report kodi issues on the kodi and libreelec issues on the libreelec forum.