Parody falls under fair use, replacing someone’s face like on this video is very different and definitely not parodical, educational or used in a limited and transformative form (when the latter applies is currently pretty much open to debate) .
Also, and most importantly, using the likeness of a performer without authorization, especially in ways that could damage one’s reputation and honor, is a clear infringement of performers’ rights. In this case an uninformed viewer might really believe that mr Stallone was performing that scene, he could very well expect to win easily if he sued the author. If the video maker had instead explained the process, like in this video, such court case would stand on much shakier legs and the content would easily fall under fair use.