First add a video to your media library by using Pick from Photos... or Pick from Files...

Now in the Media menu, long-press that video.

If your video contains chapter markers

If your video contains chapter markers, use the toggle switches (or PAUSE ALL, UNPAUSE ALL) to automatically pause the video at this point.

Adding pause points manually

Use the video player at the top to navigate your video.

Tap “ADD PAUSE” whenever you want a pause point. You can change your mind by tapping the row that appears under PAUSE POINTS.

When you load this video you will see the pause points indicated on the timeline.

How to load a video into Video Pencil from a card