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Re:Show HN: Gnomecast – A Linux Chromecast GUI with transcod... by Wofiel on Friday February 16, 2018 @06:04AM (#16391508)
Reportedly does.

>If media codecs are supported by your Chromecast device, VLC only acts as a streaming server (which is battery consuming). If not, VLC will transcode and stream media, which is highly cpu and battery consuming.

[1] https://geoffreymetais.github.io/features/vlc-30/#chromecast

Re:Show HN: Gnomecast – A Linux Chromecast GUI with transcod... by keredson on Friday February 16, 2018 @09:59AM (#16392748)
also they're transcoding to V8 and webm. so pretty much transcoding everything.