I have no problem with it here.
I made a change to add animation. The video starts about 5 seconds after the slide comes up. Here is the modified version.
https://www.dropbox.com/s/0uhr250iuehqj2t/prese...
Let me know if it still has the same problem on your end.
**Which version of PowerPoint 2016 do you have?**Someone else just reported the same thing with embedded videos (from PC) in PowerPoint 2019. I'm thinking this may have something to do with a particular release. This would be under File > Info.
My version is 1911.
What is your Office Installation default language? The other person is using the Turkish version. I've seen some bugs slip into only non-English versions of Office. That may be what is happening here.