This is my opinion only, as I have no direct experience with pool construction practices, other than my own.
I cannot say if this is normal or not. And yes, this absolutely does not conform with the language from the report. And no, I would not be happy if this were my pool.
However, the geotechnical (soils) engineer is not responsible for the structural design of the pool. The pool structure (should) be designed by a structural engineer (SE) who uses the soils information from the geotechnical engineer. Right or wrong, many pools in Texas are built without an SE. Are your plans stramped by a structural engineer? If so, my next step would be to ask for a letter from the SE that the sandbags are OK.
If your pool is built without an SE and you PB insists on the sandbags I am unsure what recourse you have. I suppose you can press the PB to explain why they are not following the recommendation from the report (the obvious reason is money). Maybe try the building department/inspector?
Maybe there are code requirements for proper compaction, but I have no idea.
Maybe I don't understand the video, but this seems like a huge amount of backfill. Why was the pool over-excavated? Is this from a change you made to the design or did the PB screw up?