It will present DV correctly, but you must do things exactly right. I have FINALLY figured this out after a ton of trial and error.
For MOST DV movies (anything under 169 minutes or so), follow steps 1-3:
1. Rip the FULL DISC with MakeMKV. Do NOT make an mkv with MakeMKV. Full disc rip only.
2. If you don’t need to swap out any audio or subtitle tracks, you’re done. Just use the movie file (the largest m2ts file in the BDMV\Stream folder) and that will play on the X700 just fine.
3. If you do need to swap out audio or subtitle tracks, then open the movie m2ts file (from step 2) in tsmuxer, make your audio and subtitle selections, and then - and this is important - export to m2ts, NOT to a BD folder. This is the file you can play on the X700.
Now then…this is what I’ve found out - I have no idea why, but exporting to a BD folder with tsmuxer will somehow break the DV layer. It will read as HDR10 in mediainfo, and the X700 will also read it as HDR10. The ONLY WAY to preserve the DV layer is to export to m2ts, NOT a BD folder. You can check this yourself. Check the mediainfo (tree view) of your original m2ts file, and then check it again after exporting both ways. Exporting to m2ts will retain DV, but exporting to a BD folder will not. So with this in mind…
For LONGER DV movies (anything over 169 minutes) that will not natively seek on the X700, add these next steps to the ones above:
1. Once you have your final m2ts file from the steps above, take THAT file and put it BACK in tsmuxer. At this point, export to a BD folder (don’t worry, we will still keep the Dolby Vision, but the BD folder export is a necessary step here). Do not delete the m2ts file you used here. You will need it for step 2.
2. Go into the BD folder you just created, into the BDMV\Stream folder. Now this is important - the m2ts file you just used for the previous step? We will call that file A. Name it exactly the same as the m2ts file in your new BDMV\Stream folder (we will call that file B), and COPY and OVERRIDE file B with file A. What you’ve basically done is have tsmuxer make you a BD folder, but you’re replacing the m2ts file it just made with broken DV with the original one you had with intact DV. The BD folder structure will still work perfectly.
3. Copy the BDMV folder into the root of your USB device, and click on “AVCHD” on the X700 and this will make a 169+ min m2ts file seekable, maintaining DV in the process.