According to https://ark.intel.com/products/97185/Intel-Core-i7-7700HQ-Processor-6M-Cache-up-to-3_80-GHz Intel® Quick Sync Video is supported. Should i update the drivers ?
This is output of mediasdk_system_analyzer_32.exe :
In general about KabyLake support, since you are on Windows 10, it should support. Please check following post for the detailed info.
For your question, could you try to disable the AMD graphic card to see if you can get the Media SDK working?