Figured it out. Seems "Loading game"/start game screen doesn't play friendly with steam games. Turned it off and now the video stops when starting a game. Worked for what was happening for me. Hope this helps others.
Yea, I needed it to run Nesica2020 theme. Doesn't work on newly update BigBox. Yea, the bigbox doesn't update with launchbox updates. I asked for roll-back, and they obliged. Very awesome of them. Figured it out though, in case anyone falls into this predicament. Just re-download launchbox and copy/paste license and be sure to install in a separate folder from any roll-backed Bigbox. It came with new BigBox so it works now.