That's exactly what it's for. Some of them have background music on them, to get it misclassified. Some also put a random face at the bottom with the same phrases every now and then to get it classified as a reaction video. I've also seen black lines in the middle of the screen. Sometimes the clip jumps forwards and backwards to make it harder to detect.
I think the subway surfer thing was also originally intended for that, before it was found that it somehow also increases attention. The split between the videos also makes it harder to identify what it is, so maybe it'll get classified as a minecraft clip instead of copyrighted movie.
People go to insane length to post full movies and shows on YT Shorts/TikTok/Instagram. It's like early YouTube again where you'd watch and episode over 50 parts.
That's exactly what is happening here, additionally slightly sped up or slowed down audio, jump cuts, added music, pretty much anytime a clip is edited like this, it's to prevent automated copyright tools from flagging and removing.
And its not "free" as in a data-harvesting honeypot, rather that they make enough money from paid user that they can afford giving access to a few servers for a free tier.
Never been on any Facebook or Instagram video reel, have you? You can’t go 10 reels in before hitting something like this, even if it’s not exactly like this.