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The tutorial demonstrates how to fix the two megabyte error when uploading a thumbnail to Youtube Studio. The issue is caused by the thumbnail file size being too large. There are two solutions - resizing the thumbnail to reduce pixels or saving it in a more efficient file format. The resizing process can be done in software like Photoshop or free alternatives like GIMP. Once the software is installed, open the thumbnail file and resize it by clicking on "Image" and then "Scale Image."