For everyone who reads this now...
I had to adjust the Run Script like this:
query=$1
# the folder
DNAME=$(dirname "$query")
# the filename
FNAME=$(basename "$query")
SNAME="${FNAME%.*}"
# output the directory name, and folder name
#echo "Folder: '$DNAME', File: '$FNAME', Name: '$SNAME'"
# This worked but the file name came out "shipping-address.mp4-encoded.mp4"
/opt/homebrew/Cellar/ffmpeg/4.4.1_3/bin/ffmpeg -i "$DNAME/$FNAME" -codec:v libx264 -crf 21 -bf 2 -flags +cgop -pix_fmt yuv420p -codec:a aac -strict -2 -b:a 256k -r:a 48000 -movflags faststart "$DNAME/$SNAME.mp4"
rm "$query"
It is also important that you select the right file of your ffmpeg. To see where it is execute the following in your terminal:
brew --prefix ffmpeg
Cheers,
Plutoris