I've tested this again in builds before and after the revert (comment #2) and after the revert, there is one particular bit of the bad transition that is gone. In the recording, after clicking the fullscreen button and the browsing window resizing, there are three frames where the video is seen in the lower left part of the screen before finally everything looks correct again.
This has been fixed by the revert, but the transition is still bad, but no worse than before. Issue 396576 and issue 407002 are parts of getting the timing exactly right so that there are no bad frames, but I'm closing this issue since it's a release blocker and in fact fixed.
I'm pretty sure about the above, but I could be mistaken, so if there is some aspect that's worse than in M53 even after the revert, please provide a recording that illustrates this.
Comment 1 by ranjitkan@chromium.org
, Jul 21 2016