[Astrocyte74]

 

The reason you get the "hardware" option in Kodi is almost certainly related to the rest of you hardware and the HDMI 1.4 ports on those devices.
When using HDMI 2.x ports in all of the connected devices (HTPC, receiver and/or TV), then I don't think one gets the "hardware" 3D option. I don't get it, no matter how I install the latest driver. I get it when I use a HDMI 1.4 connection, but not when using the 2.x port.    

OK thanks Shadwow128 and p750mmx!
Very interesting!  Would have never thought of that!
Yes my receiver and projector are both HDMI 2.0 - so that's the difference!   Are you aware of anyway to force the NUC to output HDMI 1.4? (as Shadow 128's set up is since his TV is HDMI 1.4).
Nothing in Bios (I tried disabling CEC - no effect).  I tried an old HDMI cable - no effect.  I suppose there is the HDFury route, but that's not cheap!  Thanks for any suggestions!