As far as I know, that sighting hasn't been discredited, and this one came from a neighbor who knows Dylan. I do remember that the neighbor said they were both carrying backpacks, but I don't remember hoodies being mentioned, or anything else he was wearing. I'm very curious if the clothing Dylan is wearing in the video matches the description that the neighbor gave to LE.
Both were supposedly wearing hoodies and backpacks.
So it doesn't fit since in the video Dylan is wearing a t-shirt.