That's definitely not great, but it's honestly not as bad as I remember it; at launch, sometimes just turning the camera would cause 1-2 second halts, and that was on my 960 Evo SSD.
As your video depicts, Fallen Order's levels are broken up into chunks with "transition" triggers when you cross into a new one, causing repeatable stutter. In the "old days" these would trigger a load screen (aka Half Life 2) instead of opting for loading in real-time.
On consoles with certain HDDs in Fallen Order, there were frequent several second halts in key transition areas at launch, which I believe they alleviated after a couple of patches.
It would be interesting to see if the game on Xbox Series X takes advantage of the SSD performance to alleviate these transitional loads.
Anyway, frametime spike tolerance, and the definition of "acceptable" and "unacceptable" frametime peformance varies highly depending on the individual, it seems.