Let me try to explain a little better what the YouTuber did. First he is not changing to any APS-C mode. He is running open gate full frame video. Then he is using the firmware 2.0 High E-Stabilization mode, which has a big crop. We don't know what that crop is, but it is not APS-C. The pixel output is still the same as full frame open gate, so somehow Panasonic extrapolates that crop back up the same pixel outout as with E-stabilization turned off. Then the YouTuber put on a Super 35 lens and discovered that with E-Stabilization on High the crop is enough he does not get vignetting.
Super 35 lenses fill more than just an APS-C frame. (Maybe not by much, maybe a lot, it depends on the lens.) In this case the lenses he used filled the area of the High E-Stabilization crop. So it is not correct to make a calculation of what the YouTuber is doing to say he went from full frame to APS-C. Instead he is going from full frame to the High E-Stabilization crop area.
A few comments. We already have E-Stabilization on the S5II, and it has some crop. It just not as much we will have available with firmware 2.0. From time to time I use Sony APS-C lenses on my full frame A1. I can see exactly what circle the lens covers. It varies by lens, and for zooms it varies by focal length. Sometimes the area is pretty large, sometimes smaller. But it always more than large enough to fit within the APS-C frame size. Also, I have the G9II, and it has the High E-Stabilization mode we will get with the S5II with firmware 2.0. Same thing, it has quite a bit of crop, and it still outputs the same pixel width and height of the selected format, up to open gate, so the camera needs to extrapolate back up to that size.
With High E-Stabilization on the S5II there could be some compromise in video quality. But with open gate I always take it back down to 4K for delivery anyway, so I'm not expecting much effect. It will be interesting to see how it goes.