[gurabli]

Optimal is: not converting anything.

In your case:

xrandr: Full (*) _or_ Video Range 16:235 (only available in LE and OE) not to be confused with Limited 16:235 xrandr setting
kodi: Use Limited

TV: Needs to be in limited Range

*: Some TVs switch to Full range and don't allow tunneliing of Limited Content in that full range as they check the info frames, for those TVs especially this "Video Range 16:235" was made.

Edit: In your Full + Diterhing path you get nice colors, too - but WTW and BTB won't be working anymore.

Disclaimer: All that above only makes sense with EGL kodi

Just to check something, as I'm configuring an N3150 for my friend. Based on your explanation the best is to have not converting anything. Following the guide, Kodi is set to broadcast Full RGB (not using your custom passthrough kernel). So it is now:

Option 1)

Broadcast Full RGB -> Set Limited in Kodi -> TV set to limited => Picture looks nice, I'm not familiar with this screen and had no time for test patterns, but to me it looks fine (we just checked the built in test pattern in Kodi, and flashing is seen, blacks look correct, not washed out).

or

Option 2)

Broadcast Full RGB -> Kodi NOT set to limited, Dithering enabled at value 8 -> TV set to full RGB => Picture looks quite the same, no crushed blacks, in a short time I could not see much difference compared to Option 1.

Based on your post the Option 1 should be the best choice, correct? I think TV supports it fine.

Now if TV support Option 1 fine, is there any advantages going with you custom kernel 16:235 pass-through mode -> Kodi set to Limited, TV set to Limited?

Many thanks!