I enjoy movies, even though they are staged.

Everybody knows movies are staged, even the ones that are "based on a true story". From what I can tell, people seem to think those short videos are genuine.

Everyone knows movies are staged, and they expect this. No one in their right mind wants to go to a theater and pay $20 for some crap that someone shot on their phone with no script.

With the short videos, people expect them to be genuine, and not highly staged productions meant to entertain.

I think better comparison would be documentaries and reality tv.

No, I watch these kind of videos expecting them to be fake. Why would I expect otherwise when I have every reason to expect them to be non-genuine? If people's expectations are not right, that is on them.

Do you friends think they are real and get mad when you point out that they aren’t?

If every time I watched a movie with my SO they said "you do know this is completely fake, why do you even like movies?", I would probably get a bit annoyed

Would you get angry because you thought it was real though? Because that’s what happens with these people.

They show you something and say something incredulous like, “I can’t believe something like this is legal. How is this allowed?”

Your choices are to point out it’s fake or play along in a stupid fantasy. The latter is disingenuous just to avoid conflict.