This isn't a bug, I questioned him about it on his video after I saw it didn't work for me either. Look at picture for his response.
You can also see under Limitations on the game page it says:
- In episode 3, displays placed inside of a chip will be visible on the face of that chip when it's used inside of other chips. I still need to figure some stuff out with this feature, but it will be added in a future update.