You have to read the law in total and not try to cherry pick out a specific phrase:
632. (a) Every person who, intentionally and without the consent of
all parties to a confidential communication, by means of any
electronic amplifying or recording device, eavesdrops upon or records
the confidential communication, whether the communication is carried
on among the parties in the presence of one another or by means of a
telegraph, telephone, or other device, except a radio, shall be
punished by a fine not exceeding two thousand five hundred dollars
($2,500), or imprisonment in the county jail not exceeding one year,
or in the state prison, or by both that fine and imprisonment.
(c) The term "confidential communication" includes any
communication carried on in circumstances as may reasonably indicate
that any party to the communication desires it to be confined to the
parties thereto, but excludes a communication made in a public
gathering or in any legislative, judicial, executive or
administrative proceeding open to the public, or in any other
circumstance in which the parties to the communication may reasonably
expect that the communication may be overheard or recorded.
It's talking about public gatherings where the person it speaking. The first part of the law specifically excludes your contention that just because another party might hear it ("whether the communication is carried on among the parties in the presence of one another") DOE NOT remove protections against illegally recording a conversation.
The exception under paragraph "C" applies to speaking at a public gathering, para "C" does not provide an exception by simply having a conversation in a public place even though some third party might have overheard that conversation. It is illegal under California Penal Code to record conversations, even if in a public place. It is not illegal under the California Penal Code to record someone speaking to a crowd at a public gathering.
The videos were not a public speaking engagement, they are a private conversation that took place in a restaurant.
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