Yeahhh... "working" is a way to put it I guess.
It is working as intended.
This was very early FIRST public test for this tech. It was obvious it will be buggy but in fact it was much more stable than 99% people predicted.
Pretty much most of the crashes and bugs came from using old pre-polish version of 3.22 that was moreover gutted for servermeshing stability rather than game stability and people still managed to play for hours in some cases.
The other half of your videos are showing what happens at the boundary between planet and space in star citizen which doesn't have anything to do with server meshing. This is how 99% of space games that allow rotating/moving planets handle such things. If they didn't do it like that players would have to learn advanced physics to understand orbital mechanics which is something unplayable for nearly all people.
Stuff "vanishes" moving into planet boundary not because server meshing doesn't work but because planet rotates fast and the moment bullet or something falls into that physical grid its "rest" changes to that of rotation factor of planet. In one video at some moon where rotation is slower you can actually see player moving horizontally ultra fast.
Just to compare Earth rotation at surface is around 1600km/h at the point in space where SC players join it would be multitudes of that and that's with 24 hour rotation. SC planets are around 1/6 in size which would make them slower in rotation but they rotate much faster as whole day and night is very short going from hour to two which means we are talking her about 10 000km/s range of rotational speed.
Alternative to that are non rotating/moving planets which players don't want or using orbital mechanics which players are too dumb to learn or use which would make PEW PEW gameplay impossible.
Only reason why it was even discovered and recorded is that servermeshing is covering whole planet grid and when player switches server you can see it in log. That boundary layer is so far away from normal gameplay that 99.999999999999% don't know it exist in first place and how it works.
You can actually see some players knowing that and moving to poles of planet where rotation is non existent to test server meshing and there it works correctly without planet rotation messing things up.
