Fudzilla isn't really talking about their sources, so it's difficult to gauge how confident we should be, but they claim to have information about the video codecs supported by Kaby Lake's iGPU. This update is supposed to include hardware support for HDR video, the Rec.2020 color gamut, and HDCP 2.2, because, if videos are pirated prior to their release date, the solution is clearly to punish your paying customers with restrictive, compatibility-breaking technology. Time-traveling pirates are the worst.
According to their report, Kaby Lake-S will support VP8, VP9, HEVC 8b, and HEVC 10b, both encode and decode. However, they then go on to say that 10-bit VP9 and 10-bit HEVC 10b does not include hardware encoding. I'm not too knowledgeable about video codecs, but I don't know of any benefits to encoding 8-bit HEVC Main 10. Perhaps someone in our comments can clarify.