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I remember Scott Manley saying this was only like a 5% efficiency gain for rockets. Any idea if it’s bigger for air breathing jets?

Given how much of the total weight of a rocket is required for fuel, 5% is massive.

I mean its a big deal on a statistical level for many launches adding up, but it’s not exactly going to take us somewhere we can’t otherwise go.

It kinda does, a bit. "5%" by itself is a little vague thanks to the rocket equation relating delta-v and payload fraction with an exponential.

It does for rockets with many stages, as the lower stages will get an exponential benefit.