I found the issue. It looks like you have to also shut the ability off per category. Once I did this, it made it so that they cannot add videos. Guess it's not a bug as much as not really intuitive. :)
I have permissions for my members to be able to see videos, but not add them, however they are still able to add them. I have tried almost every variation to see how that is happening, and cannot seem to find it. Thanks.