The neutrons from D-D fusion are much lower energy than D-T fusion, and don't cause the same damage to materials. They're similar to fission neutrons, and modern fission reactors last sixty years without refurbishment.
According to Helion and other sources I've seen, their hybrid reaction would only release 6% of its energy as neutron radiation, compared to 80% from D-T. They could also build reactors dedicated to D-D and hence He3 production, designing their power plants to mostly burn D-He3. That would reduce power plant neutrons to less than 1% of power output.
Regarding net power and scaling, I'm not competent to talk about it but here's the CEO of Helion going into some detail on their view: https://www.youtube.com/watch?v=G1vyMcqiVtA
Plus their idea to convert fusion energy directly into electricity depends on many unknowns to assert that it will work with reasonable efficiency.
So even if their approach may work to produce positive energy output in few years, a practical device will still be far away.
Edit: Helion itself admits that net positive in electricity with D-3He is tricky even with their design at that presentation.
So most likely their first prototype will be D+D with all the problems associated with high-energy neutrons.
The presentation says they think they can get a 5X gain with D-3He, and they think that's sufficient given the efficiencies of their heating and extraction.
It's perhaps worth noting that the high speed, high power electronics required to implement their approach are fairly new. I don't know how old the concept of FRC merging is, but if it existed in the 70's they wouldn't have had the technology to build it.
Edit: and to be clear, I'm talking about the dynamic control circuits, not the capacitors. That's old technology.
As for the input heating loss, presumably that's included in the 95% recovery figure. If it's not, then it would definitely be good to know what the actual figure is including input heating losses.
To make fusion viable you have to generate a substantial surplus of power that can be converted into usable energy. Nothing in that video touches on that subject at all. The most he can say is that it is possible D-He3 can reach scientific breakeven, which of course, is no where close to net power generation.
It is strange to see claims about Q > 10 using D-T fusion being possible and then immediately pivot to talking about being excited about Q > 1 using D-He3. If you can build a fusion reactor that could produce Q > 10 why would you bother pursuing Q > 1? The 'benefits' of direct electrical generation from D-He3 are not relevant if you can't even produce net positive energy in the first place. Electrical generation is a solved problem; if you can produce net energy you can produce heat that can power a turbine.
If the most you can do is talk about how Q > 1 is possible it seems unlikely you are going to start producing electricity any time soon.
But Helion hopes that with their design where the theoretical efficiency of electricity generation is 100%, they do not need such high Q allowing one to be excited about Q > 1. Their models predicts Q around 5.
The problem is the model uncertainty. If the real Q will be just 2, I very much doubt that they can limit the total losses below 50%.
But even if they can get net gain in power per pulse, they are too optimistic about neutron flux and its consequences. Again, model uncertainty is big.
So overall there is very little room for unexpected in their design so I am very skeptical based just on that alone.
I was pretty sceptical about achievable power density going in and the gish gallop actually pushed me into believing helion a bit more if someone who allegedly is an expert needs to be this duplicitous to criticize it.
For example, Helion’s patent https://patents.google.com/patent/US11469003B2/en hints how critical is suppression of the secondary D+T reactions and removal of T to their design, but patent itself does not describe how they are going to archive that. The only claim is that there would be no time for secondary D+T in their design. But that is based on those imprecise models at best. Nobody knows if that is true for sure. Plus the patent does not tell at all how they are going to remove mechanically all T after the pulse as keeping even 1% of T can be problematic.
In addition the extended video cites Helion own admission that the neutron flux from D+D alone will be like 1e18 neutrons/day based on their models. That type of flux damages a lot of materials within days with slower fission neutrons.
While their aluminum coils may handle that better especially if partially shielded, nobody knows for sure again as modeling effects of radiation damage is hard.