On a Mac with OS 10.15.6 and VLC Media Player 3.0.11.1 when I try to transcode a stream as a file by Open Network.., enter a URL for a m3u8 stream, check Stream output, Settings..., select File, specify location for file, and choose Encapsulation Method of either MP4 or Quicktime (relocating the file location to change extension), OK, then Open when the file is created Quicktime player only plays the audio from the converted stream. When I additionally choose the Transcoding option for video as h264 (and nothing selected for audio), the converted stream now displays the video but no audio. When I add any of the audio transcoding options, along with h264, there is no change as only video displays.
When I do not try to convert to Quicktime or MP4 and use TS encapsulation, Quicktime Player plays both video and audio and I then convert the TS using Handbrake to MP4 and everything works.
I would like to eliminate using Handbrake to generate MP4 videos with both audio and video and somehow use VLC but have not found a way. Does someone know what is going on, and how I can fix this?