Is it possible that an external application is interfering with VRChat's video playback and causing the 'Retrying' error?

Yes, external applications can interfere with VRChat's video playback and cause the 'Retrying' error. Overlays (like Discord overlay, GeForce Experience overlay), third-party audio software, or even aggressive antivirus programs can sometimes conflict with VRChat's rendering or networking processes. Try closing unnecessary background applications before launching VRChat to see if the error is resolved. As mentioned on Reddit, disabling overlays is a common troubleshooting step.