User blog comment:Dopp/Technical Update: April 10, 2012/@comment-33460495-20120413084323/@comment-957747-20120413092221

The IP showing up as 127.0.0.1 is a bug. That IP is a loopback protocol that references your computer. The real user should be shown as WikiaBot. Regardless, Sarah Manley has asked that you report instances of the bot not converting video files correctly to Special:Contact/bug so they can access them.

As far as videos being referenced as files, that is how Wikia has intended them to be referenced. That should also be addressed in Special:Contact so they know how many users dislike that change.