Yes this is a classic, and I think I was first introduced to it when I was going through my fake-circle trauma. As ridiculous as it seems, it describes the real (mis)behaviour of people. But I feel there should be an equal and opposite video. Perhaps one where an engineer keeps producing solutions to problems nobody has. (An astroturf mower? A robot that goes to the gym for you?)

I think if you had both those videos and a convincing explanation of how they can both be truthful, the combination would great training material for everyone on a product team.