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The bare minimum viable is an AMD CPU of some description, and an AMD GPU that can at the very least decode h.264 and h.265; an FX-4300 or R3 4100+RX 550 combo would be a good example for the bare minimum viable Linux HTPC build, as Polaris cards like the RX 550 can decode h.264 and h.265.
Ideally, you'd have an AMD CPU and an AMD GPU or integrated graphics in the case of an APU, that in addition to decoding h.264 and h.265, can also at least decode VP9 if not also AV1; an R5 3400G would be a decent HTPC APU in that case since Vega integrated can decode VP9 in addition to h.264 and h.265.
Beyond the hardware, set up the appropriate hardware acceleration so you can decode video through VA-API, and then set up Kodi and get a cheap tablet to install Kore on and use that for a remote.
I think this is overkill. Recent AMD CPUs have integrated GPUs that are probably more than enough for video playback and recording. I would start with that and consider adding a discrete GPU only if the need arose.
The RX 550 is straight-up the lowest requirement for an HTPC as it will decode h.264 and h.265, which is the bare minimum requirement for that use case, so it's a 'Stick this in an old desktop you have laying around and there's your HTPC' kinda deal.
Recent AMD CPUs have integrated RDNA2 GPUs, with h.264 and h.265 decode/encode support. This has been the case for years. Buying an RX 550 for that purpose when the CPU already does it would be a waste of money, space, and electricity, and generate unnecessary heat and (eventually) e-waste.
If OP already has a spare CPU without that support built-in, then your suggestion might make sense, but I don't see any indication of that being the case.