I can reproduce this.
https://www.youtube.com/watch?v=VP9OH0O_V2Q is not geoblocked in any country.
According to your screenshot, you’re downloading a YouTube Premium format 616 (indicated by /itag/616/) (mp4/m3u8/vp9) using an upstream yt-dlp 2026.08.19 executable with the default visionos extractor, which is a video only format - this is not supported in VRChat, at least if you want audio with it.
Both android and web_embedded would return a playable 360p format 18 for the video URL, which is supported in VRChat for audio & video.