Yes. Subs use low-pressure steam to desalinate sea water. Having lots of fresh water for showers was a huge benefit of nuc boats over diesel boats.
Worth noting that even in the vid, you have crew members of senior rank watching on as they have never seen it done before, which indicates how uncommon it's usage is.
Thankfully, we never had to use oxygen candles. Candles are effective only in a small closed space. That would have been a serious emergency.
Glad to hear you didn't have a situation to use one and does seem a very rare situation, but neat that there is a solid backup.