There is no need to isolate the upper electrode since the lower one is isolated. Note that the output voltage on the electrodes is very low and since it is the secondary it is electrically isolated from the primary. If the chassis is grounded, it would be 0v and the lower electrode will be a couple of volts above the ground.
Unless I'm seeing things, the lower electrode does not appear to be electrically isolated from the chassis. (Though it would appear to be the easiest one to isolate.) But regardless of the low voltage, the high amperage is going to weld everything in that handle up, if there's a dead short through the chassis.
Seems like a funny detail — not to at least allude to in the video.
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