Hi @RichardVorak,
Do you know how exactly the student is uploading a video? Theer are actually a lot of different ways to do this in Canvas and a lot of 3rd party video tool options as well, and we don't have a way to know what's available in your specific Canvas. If you could provide more info or even screenshots of what the student is doing, that would be really helpful.
Without any additional info, my initial guess is that the student is uploading the video to their "user files" area, and that they do not have enough available space there for the video. Assignments/Quizzes don't really count towards file space limits, but discussions are much more of a gray area, depending on whether not they are graded, and again exactly how something is being uploaded.
We look forward to hearing back from you!
-Chris