Sort of. :-) We're using iOS's VPN capabilities but not actually running a VPN. As the Wireshark session in the video shows (but please verify yourself!), blocked tracking requests never leave your iPhone or iPad (are never sent) with Disconnect Kids installed.
I saw the video. I was asking how is the app able to block the tracking on the whole iOS device? What does the configuration profile this app installs exactly do?
(I'm one of the devs.)