This seems kinda skewed by guy being in Priest's camp & seeing everything through that lens. The main dust-up between all parties was the Sunz album & the Priest album coming out at the same time. Priest's focus was on him, everyone else wanted the Sunz album to be the priority, but RZA was the one setting up the deal for Sunz which Priest was a member, so it's not like he was against KP while also trying to set him up as the frontman of his own group. It's more the conflict of interests over how everything played out between those two albums that set the schism between Priest & the rest of Sunz/Wu for a minute.
I think the real motives behind the video comes through around 11 minutes when he says that QWFSW not being on HM squashed his music aspirations. Truth being, KP ended up with a 20 track album & some things were gonna get left off regardless. Plus how is having a song with a similar name as a Killarmy album going to make you pull the song? Especially an album RZA has no involvement in.
Priest has said himself that during this time the strained relations w/ Sunz/Wu had made him think that RZA was against him or something but it was really RZA was just kind of backing the other members of Sunz who suffered when Priest had that project take a back seat (plus the mess w/ Red Ant/Threat as a label), which is why Prodigal, Razah & 60 were all more heavily featured in the next couple years & Priest did his solo stuff mostly outside of Wu. But he's said in recent years & even done songs on it saying it was more misunderstandings & miscommunication over anything deliberate by either camp.