Hi. It's around minute 8:53. It is a combination of steps since B is multiplied by a step function which is 1/s. Therefore the matrix of [0 1 1] becomes [0 1/s 1/s]
You are not suppose to multiply by U(s) because G(s) = Y(s)/U(s). So if you multiply by U(s) is not G(s) any more but Y(s). This is the formula Y(s)/U(s) = {C[SI-A]^(-1)}B+D