playback of unencrypted Blu-ray Ultra HD HDR

So UHD blurays are officially out in the wild.
Current version of klite seems to be able to play streams directly from ISOs, but not without issues.
1. Playlists and index.bdmv won't load. You have to open video directly from the STREAM folder, but that means no chapters.
2. HDR videos (HEVC 10-bit) are all greyish and colourless on a non-hdr monitor. Is this something that can be fixed?

I am using LAV splitter and LAV decoder using DXVA2 native on GTX960.

I will look into the first issue later.

For playback of HDR you need to select MadVR as video renderer in MPC-HC settings. That is able to convert it into normal SDR video for display or regular monitors and TVs.

I'm not a big fan of MadVR, but I gave it a try.
In windowed mode the colours look normal now, but going into exclusive mode (fullscreen) produces video made only out of black and some red colours.

You can disable exclusive mode in:
madvr options > rendering > general settings

Even with exclusive mode disabled it still looks broken.
Here is how it looks windowed and in fullscreen.
https://imgur.com/a/uX4Y2

Edit: I managed to fix it by changing hardware acceleration mode in LAV Video settings from native to copy-back, but I feel that this is a workaround rather than solution.
Anyway, I only realised that after switching renderer to MadVR in MPC-HC settings LAV Video Decoder is still active. I thought that by doing the switch I am replacing LAV with MadVR.

How does it work then? Why both are still active?

LAV is used for decoding the video. The video renderer is responsible for displaying the decoded video on your screen, and does things like resizing and color correction. Madvr replaces the default video renderer (Enhanced Video Renderer).
So there is always both a decoder and a renderer.
The issue with DXVA native might get fixed in the future. Only some people are having problem with it, so it is not clear yet if it is a driver bug or something in madvr. Copyback is best choice right now.