To actually get those videos downloaded with the game, you need to ensure you have the Shader Pre-Caching system enabled, as it contains game shaders to improve performance and the re-encoded videos too.

Does that mean that if shader pre-caching is disabled, such videos won't be re-encoded on the fly, so enabling it is the only way to see them?

I am worried about games that have such videos but which are used for something like a cut scene, where nothing plays, not even the test pattern. When that happens, you've no idea that there even was a cut scene supposed to play, so you're missing out.