Video encoder & segmenter for HLS VoD poor quality

Question

I am trying to encode and segment video for HLS on demand(VoD). I am using the following code for such:

ffmpeg -i 20170706_174314.mp4 -c 24 \
        -vcodec libx264 -acodec aac -ac 1 -strict -2 -b:v 128k \
        -profile:v baseline -maxrate 400k -bufsize 1835k \
        -hls_time 10 -hls_playlist_type vod -vsync 1 \
        video_chunks/index1.m3u8 \
        -c 24 -vcodec libx264 -acodec aac -ac 1 -strict -2 -b:v 128k \
        -profile:v baseline -maxrate 700k -bufsize 1835k \
        -hls_time 10 -hls_playlist_type vod -vsync 1 \
        video_chunks/index2.m3u8

Later on I create another playlist with bandwidth separators to call on the two other playlists generated with the code above.

I tried this other code also just for segmenting but had the same exactly problem:

ffmpeg -i 20170706_174314.mp4 \
-c:a libmp3lame -ar 48000 -ab 64k  -c:v libx264 -b:v 128k -flags \ 
-global_header -map 0 -f segment \
-segment_list video_chunks/test.m3u8 -segment_time 10 -segment_format mpegts \
video_chunks/segment_%05d.ts

This code was working great on some videos but yesterday I recorded a video with my Samsung J7 Prime phone to test since the videos will be generated by phone and this video was poorly encoded. The quality sucks and some parts of the video turned Black&White.

Another thing I noticed on this video is that the following message kept appearing in loop until the end of the encoding&segmenting process.

Past duration X too large

Where X is a decimal really close to

0.675316

The link to the video is below:

Dropbox Link

My FFmpeg version:

ffmpeg --version
ffmpeg version N-86482-gbc40674 Copyright (c) 2000-2017 the FFmpeg developers
  built with gcc 7.1.0 (GCC)
  configuration: --enable-gpl --enable-version3 --enable-cuda --enable-cuvid --enable-d3d11va --enable-dxva2 --enable-libmfx --enable-nvenc --enable-avisynth --enable-bzlib --enable-fontconfig --enable-frei0r --enable-gnutls --enable-iconv --enable-libass --enable-libbluray --enable-libbs2b --enable-libcaca --enable-libfreetype --enable-libgme --enable-libgsm --enable-libilbc --enable-libmodplug --enable-libmp3lame --enable-libopencore-amrnb --enable-libopencore-amrwb --enable-libopenh264 --enable-libopenjpeg --enable-libopus --enable-librtmp --enable-libsnappy --enable-libsoxr --enable-libspeex --enable-libtheora --enable-libtwolame --enable-libvidstab --enable-libvo-amrwbenc --enable-libvorbis --enable-libvpx --enable-libwavpack --enable-libwebp --enable-libx264 --enable-libx265 --enable-libxavs --enable-libxvid --enable-libzimg --enable-lzma --enable-zlib
  libavutil      55. 66.100 / 55. 66.100
  libavcodec     57. 99.100 / 57. 99.100
  libavformat    57. 73.100 / 57. 73.100
  libavdevice    57.  7.100 / 57.  7.100
  libavfilter     6. 92.100 /  6. 92.100
  libswscale      4.  7.101 /  4.  7.101
  libswresample   2.  8.100 /  2.  8.100
  libpostproc    54.  6.100 / 54.  6.100

SO: Windows 10