No, it does not 100% work every time, but will block out most inappropriate content if it is flagged as inappropriate by others.
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FAQ Category: Videos
Comments on your new videos: Refers to all videos uploaded from now. Comments on your channel: Refers to all videos you have uploaded to your channel. Allow all comments: Anybody who can view your video can also comment. Hold all comments for review: Comments will not be displayed under your video until you manually approve […]
Private: Only those you invite can view the video, up to a maximum of 50 people. Unlisted: Others must be given the link to view the video. Public: Default Setting: Anybody can view the video.
If anyone else is in your videos you should ensure that you ask their permission before posting online, even if they are just in the background. It’s a matter of privacy and being polite, as they might not want to be in the video. It’s better to be safe than sorry in this case.