IANAL but using the LV logo and their recognizable pattern to sell your own wallet, especially given that they also sell wallets, is a pretty bad idea.
I don't believe the issue here is the repurposing of the bag but rather the commercial use of it by creating a "competing" product. The author states in their video [0]: "Louis Vuitton went undercover to buy one of my repurposed wallets [...]". If it was done as a challenge for YouTube or a unique piece for your personal collection, LV probably wouldn't have bat an eye.