Sorry but that video appears to only be checking the repeatability of a single axis to repeat a move and is not demonstrating backlash removal. Your video is very good at showing the repeatability but you are approaching the set position from the same direction each time.
Backlash compensation is to accommodate the error found when approaching a reference point from either a positive or negative direction hence the table is zeroed to a DTI moved positive "A" inches then reversed "2A" and then reversed again back to the original position where the test indicator will verify that the backlash has been compensated for or show the backlash. BUT and it is a very big but this may not work well for circle cutting where the direction of cut varies with the angular placement with respect to the two axis being driven to generate the circle.
Regards - Pat