YouTube Shorts watch time can be count or do not count in YouTube monetization watch time threshold based on different situations.
You can learn about these different cases in this post, that when YouTube Shorts watch time counted and when not.
Let’s get started,
How do YouTube Shorts watch time count toward YPP monetization threshold?
YouTube Shorts video watch time do not count towards the YPP watch time threshold, when videos are played from the ‘Stories and short videos’ shelf.
[Ref. support page]
And, when YouTube Shorts video is watched as like other normal videos in a regular watch page where video comment section and ads display, then that watch time counts in YouTube monetization watch time threshold.
In simple words, YouTube Shorts watch time count for monetization threshold, if it is watched in a regular way (with comment, with ads, not in full vertical mode) as like other normal videos.
But, if Shorts video is watched in full vertical shorts screen from Shorts shelf, then video watch time does not count toward monetization threshold.
Note: Above answer is given based on our knowledge and analysis.