Vertical phone videos on a wide screen
A vertical phone video on YouTube or a TV gets black bars on both sides. Fit with background replaces them with a blurred copy of the video, which looks more finished, or with a color that matches your channel or slides. A 1080×1920 vertical video becomes 1920×1080 with the picture in the middle.
Crop goes the other way: it cuts a wide strip out of the picture, which suits a 4:3 video or a vertical video where only a horizontal part matters, such as a landscape. Use the Preview frame slider to make sure nothing important leaves the frame.