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This is to skip in-video sponsorships/ads (based on community tagging them as such), not YouTube ads.

It actually works for both. It will skip/mute YouTube ads. Only ads that have the ‘skip’ button will be skipped

Which is pretty much none these days.

I’ve found that having ads muting is much less obstructive. It’s not ideal but it improves it a bit

I wonder if they can overlay a GIF of a cat on top of the video when the ad is playing...