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The Dragon Skin controversy has been going on for a few years. Troops including General officers were purchasing their own body armour as it was felt to be more flexible and better protection than the issue Interceptor armour. Many civilian contractors used it.
This stuff will not stop a 7.62mm NATO round and also has issues in hot ambient temperatures. There have also been reported production faults with discs slipping loose leaving gaps in the armour.
Of course you could believe that these failures in testing have been orchestrated by the manufacturers of the Interceptor armour or maybe the idea just needs more work.
according to the video the kinetic energy got more spread out than regular armor due to the overlapping scales. But it would still be there, just not as bad as other armor.
They still failed the US army & airforce testing and a neutral scientific comparison was inconclusive as to it being more or less effective than Interceptor armour.