Where it comes from
The bit starts in Ep. 2 ("Lettuce"), where the hosts decide to end each episode by asking whether a Digital Short makes the Criterion Collection of shorts.
How the hosts use it
At the end of a short's discussion, someone asks "is this Criterion?" and the hosts vote yes or no.
Why fans love it
A group of comedy veterans takes a silly internet-video archive as seriously as an arthouse film canon, complete with vote counts, grading curves, fan lobbying and gatekeeping.
Written by the AI from the transcripts. Every sentence was checked against them, one by one (the full episode transcript wherever a sentence names one); 6 sentences that failed the check are left out. How the check works.