I thought it was real until I checked again at the 2:37 mark, and right when it hits that time, it is the fake mirror

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flip my title around, lol

I am not surprised. It's perfectly normal to use different footage and put it together in post production when showing videogames in demo videos, trailers and so on: there are a number of technical issues and stuff that force workers to do so.
Or did you seriously believe that the famous soccer player in the latest [insert name of fancy game here] trailer was really playing the exact scene shown on the TV?

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~ Mel ~

How is this still around?

So, the Milo game was really just a video. 'grats for noticing (the timing problem I mean, not that it was a recording. That's to be expected and is fairly obvious). That does not, however, mean Milo's all a big con, that the stuff shown in the video isn't really in the game, and all the other accusations being thrown about. Milo's a brand new piece of software, highly experimental and potentially revolutionary. Wanting to make sure everything runs smoothly is perfectly fine, virtually every company does the exact same thing. What's the big fuss?

Undead---God:

How is this still around? So, the Milo game was really just a video. 'grats for noticing (the timing problem I mean, not that it was a recording. That's to be expected and is fairly obvious). That does not, however, mean Milo's all a big con, that the stuff shown in the video isn't really in the game, and all the other accusations being thrown about. Milo's a brand new piece of software, highly experimental and potentially revolutionary. Wanting to make sure everything runs smoothly is perfectly fine, virtually every company does the exact same thing. What's the big fuss?

Well said.  I think we'll end on that note actually.