I understand that a processor only supports a specific version of DirectX. Windows 10-2004 is here with DirectX 12 Ultimate. I googled but cannot find how to verify the new DirectX 12 Ultimate (that's a Windows-issue) and if the i5-7260U processor supports it.
I doubt it. There would have to be driver support. And, the current supported driver for your NUC7i5BNH is two years old. If you have been able to use the latest DCH driver, I think you would still be out of luck.
HOWEVER, if you are using the latest DCH driver (8280) and are on Windwos 10 2004, just RUN DXDIAG and see what it says.
I just checked some of my machines (6th, 7th, and 8th gen processors, with nvidia, intel, and amd graphics), and saw nothing interesting.
I thing I found some useful information here: https://www.techpowerup.com/264932/microsoft-directx-12-ultimate-why-it-helps-gamers-pick-future-proof-graphics-cards (March 20th, 2020)
"For a GPU to be eligible for the DirectX 12 Ultimate logo, it must feature hardware acceleration for ray-tracing with the DXR API; must support Mesh Shaders, Variable Rate Shading (VRS), and Sampler Feedback (all of the four)."
"Intel posted no reaction to this development, since none of its current iGPUs cut the requirements."
So much for big words in the media about a great development. Marketing and BlaBla...
I realize the article is about a LOGO which requires a GPU to support certain features. I read (somewhere) that DirectX Ultimate is also about improvements for video playback, better memory management and more efficient CPU usage. Am I getting nearer to an answer? Don't know. Intel knows what we can expect from DirectX Ultimate...
Thank you for posting your question on this Intel® Community.
Intel® Iris® Plus Graphics 640 supports DirectX* 12. You can verify this information in the following support article > Supported APIs for Intel® Graphics Controllers > Intel® Core™ Processors > Intel® Iris® Plus Graphics 640.
Regarding your question about DirectX* 12.2 (Ultimate), Intel is planning on supporting Directx 12.2 ( Ultimate) on future platforms, but no specifics can be provided at this moment.
Intel Customer Support Technician