Your Nvidia graphics driver is failing. MCEBuddy first tries ffmpeg and it your driver fails:
2019-12-10T06:16:03 MCEBuddy.AppWrapper.FFmpeg → [h264_nvenc @ 000002241ac32000] OpenEncodeSessionEx failed: out of memory (10)
2019-12-10T06:16:03 MCEBuddy.AppWrapper.FFmpeg → Last message repeated 1 times
2019-12-10T06:16:03 MCEBuddy.AppWrapper.FFmpeg → [h264_nvenc @ 000002241ac32000] No NVENC capable devices found
Then it tries handbrake and the Nvidia graphics driver fails again:
MCEBuddy.AppWrapper.Handbrake → [h264_nvenc @ 0000000005d708c0] OpenEncodeSessionEx failed: out of memory (10)
2019-12-10T06:16:15 MCEBuddy.AppWrapper.Handbrake → [h264_nvenc @ 0000000005d708c0] OpenEncodeSessionEx failed: out of memory (10)
2019-12-10T06:16:15 MCEBuddy.AppWrapper.Handbrake → [h264_nvenc @ 0000000005d708c0] No NVENC capable devices found
2019-12-10T06:16:15 MCEBuddy.AppWrapper.Handbrake → [06:16:15] encavcodecInit: avcodec_open failed
It doesn’t use your intel hardware because you selected only Nvidia in your conversion task settings (if you had selected Any it would have fallen back to Intel QuickSync), instead it’s falls back to software encoding.
99.999% of hardware encoder issues are because of problematic graphics drivers.