A/B watermarking is about static content on CDNs...
For every segment in a video there will be two versions. Every user will get a unique sequence of segments served to them.
For every segment in a video there will be two versions. Every user will get a unique sequence of segments served to them.
If a single video has say 100 segments, you get more than enough unique combinations to guarantee uniqueness. There would of course have to be a mapping between user/device ID and segment order.
Also, I assume the file in question is 4K content. Don't know about how they treat other types.