"appears"? did you watch the entire thing ? starting from minute 30. he's clearly asked about cereals and he clearly also mentions PY
So why are you telling us minute 30? I watched until at least 35, and heard no mention of pas yisroel.
ETA: Rav Weiss starts talking at 27:30 and stops at 36:15, during which time he is specifically addressing the question of bishul akum by coffee (and mashkim in general). Not once does he mention pas yisroel during that time. Maybe he gets up again to speak later and mentions it then, but if that's the case, please point to the actual time he does so.