So @jadedarmawangsa and I walked into the YouTube Space after talking with @TeamYouTube and things got super interesting!!!
Not today’s upload but you will wanna stay tuned!!! 

pic.twitter.com/yKq1WQpHkp
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My understanding is that VP8 is the native codec for 360p to 1080p. If you upload 1080p in VP8, it immediately renders all other resolutions. If you upload 1080p in h.264, it has to be converted to VP8 first and queue for that can be very long.
Other than for high view channels YouTube actually defaults to AVC (H264) for the first-pass transcoding for most people. VP9/VP8 (I don't see much of that anymore) only kicks in after time/views or if you're 1440p+ unless it's changed in the past like 3 mo.s
VP8 was what made this error message disappear from the upload screen. “Your videos will process faster if you encode into a streamable file format.”
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