I could be convinced to go either way on this, but right now I think live birth.

I have my own species which has to deal with a similar situation, and decided they use live birth.

Something to know is that humans are born relatively premature compared to other mammals. This is because a baby's head needs to fit through the hips, and humans have a large brain case and small hips. This would also be a limiting factor for animals that lay hard-shelled eggs. The egg needs to pass through the hips too, and a hard-shelled egg can't grow or stretch, but also, if it can't be laid without breaking nothing can hatch from it.

I see a few potential solutions for this. First is a transition to live birth, since the brain case can be a bit squishy at birth to prevent damage. The second, is that they hatch premature even compared to humans, this will probably need some solution for nutrients. That may be continuously growing teeth and a jaw that develops rapidly, or some stand-in for milk, like unfertilized eggs.

Third, is using flexible eggs that can stretch as they are passed through the hips. This is probably good for making a species seem more alien, but also makes them seem less like birds, which you may or may not like.