Great video but I think the correct settings are one delay 1/8 (as you say) and the other not 1/4 but dotted eight. That’s the one that lingers on a bit more If you listen to the isolated track you can hear it’s dotted eight
One little correction, the 3rd chord is a Gb6. So put your index finger on the 9th fret of the A string and use your ring finger to bar the D, G, B, and E strings at the 11th fret. This is how Nile Rodgers plays it. Interestingly, the guitar track had no delay when Rodgers recorded his takes. The delay was added in post production by Rodgers with the assistance of recording engineer Bob Clearmountain. Rodgers co-produced the album with Bowie. Here is a video where he explains the origins of the song and how he plays it. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-NlDCPCwVNUw.html Hope this helps and thank you for posting this video.