I was asked about this in one of my homebrew clubs, here was my answer . . .
I don't know all of the science behind it, but here is my take. TLDR version - I'm skeptical.
There are 7 or 8 alcohol dehydrogenase (ADH) genes in yeast. This is from the fully sequenced yeast strain (S228C), which is not a brewing version but is closely related. Any bakers yeast or brewing yeast will be very similar, although gene duplications are likely to have happened and so there may be more than one version of these genes. The activated yeast from the store that the article references will be similar.
Of these ADH genes, most of them are involved with turning acetaldehyde (CH3CHO) into ethanol (CH3CHOH). A couple of them are suspected in fusel alcohol production. Only one of them, ADH2, is able to do the reverse reaction and convert ethanol into acetaldehyde.
The purpose of ADH2 is to allow the yeast to use ethanol as a carbon source, so expression of the ADH2 gene is up-regulated in the presence of ethanol. But yeast prefer to use sugar as a carbon source, so in the presence of sugar expression of ADH2 is repressed several hundred fold. When dried yeast is made it is grown in a low gravity sugar solution which means there would not be much ADH2 present in the dried yeast to begin with.
Then there is the problem of the environment. In order for what they are proposing to work, the ADH2 enzyme would have to maintain functionality in the stomach and the GI tract. The challenge is both the low pH of the stomach and the proteases your body makes to digest food. It's possible this isn't a problem for the yeast ADH2 protein, but it seems unlikely that ADH2 would be protease resistant and low pH tends to cause proteins to unfold.
So because of the low amounts of ADH2, the low pH, and the protease rich environment of the stomach, I'm a bit skeptical. I have no idea if it works as he says it does, but if it does I doubt it is for that reason. A more likely explanation seems to me that after a couple of decades of drinking regularly, Jim's own ADH2 expression levels are high so it is broken down quickly by his body and yeast ADH2 does not play a role. Maybe we should get some yeast that completely lacks ADH2 as a control and we can give it a try.