I've also been having these issues for a while now, and have finally decided to roll up my sleeves and dig into it a little.
The IPTV Simple github readme has been a little help pointing me in the right direction, I believe:
Advanced settings - multicast relays might bear looking at. I had to make a change on my router as well as in the addon settings, but in the short time I've tested it, it seems to have made a positive difference.
I still think the IPTV Simple cache/buffer needs to be made smaller though - it takes a bit too long to buffer when it does.
There may also be some rate limiting in kodi that could be playing a part in this as well that it wouldn't hurt to consider as well.
UPDATE - I've fallen a bit farther down the rabbit hole than I expected tonight.
It's all there in the first 3 bullet points under advanced in the
IPTV Simple GitHub ReadMe but it's not clearly explained, and most of us don't have the networking knowledge/understanding
Long story short, You need to tell kodi/IPTV Simple How to look for/where to find incoming streams on your LAN, what to do with them, and it probably helps to open the door at your router for them to come in easily
RTSP is something we need to be familiar with, it seems, and it's a foundational/reserved port on the internet specifically for streaming. It relies on port 554.
this page should check if that's open on your router, and if not, you need to forward it.
I would expect UDP would need to be taken into consideration (especially if you've
IPv6 available/enabled on your network - and you really should if you can), given the nature of what Pluto is providing
Why?