Another comment pointed out that these were made by the Jam Handy Organization[0].
Just hypothesizing, but either GM might distribute these and have showings for staff as part of training. Almost certainly not for the engineers that already learned this but perhaps sales staff so they could better explain the mechanism and benefits to buyers.
I believe Chevy contracted his production company for dealers' training material. Notably, he produced the "Hired!" films for dealership salesmen, one of which was riffed by MST3K in their "Manos: Hands of Fate" episode
To me it looks like it's aimed at consumers, from the part at the end. It's as if the movie is intended to overcome worries "but is all this complexity really safe?" by showing how you can load the differential with running people without issue.
I assumed high school "shop" class. At least when I was in public school they still had "wood", "metal" and "auto" shop classes you could take (I took the wood class one year).
> Military conscripts who were assigned to motor maintenance
The OP was asking how people might watch a video like this, not who is watching it. In 1937 broadcast television was relatively new and few people owned a tv. For example, the wikipedia page for TV in 1937 notes that by the end of that year 2,121 TVs had been sold in England: