Thanks for the video, that is a very odd situation! It would almost seem like something is wrong with that centre dial ... what you didn't do was show us if the centre dial did anything while the stereo was on the "Status" screen. Does it change the channel if you deliberately turn the dial, or press the buttons within, while on the status screen? If NOT, then the culprit looks to be that dial.
If it DOES change the channels on the status screen, then I'm at a loss.
What does it do if you have a USB stick full of music in there?