I believe I was able to make progress with the fix we discovered from The Legend of Dragoon. Load your ggz game save and then create a new save within the game using the original FF7 save slot and not the ggz download save state. Once saved, right click the game window and select “Restart Game” It will boot back up and will contain your latest game save. Select “Continue” as it should detect and load your saved game from Slot 1. For some reason, all the other game saves were missing, but this method will allow you to pass the cut scene and continue playing.
Try it yourself when you get the chance. If you get stuck, here are some ggz files for before the FMV cut scene, and after:
final-fantasy-7-2-after-caith-sith.ggz (1.9 MB)
final-fantasy-7-2-post-cutscene.ggz (1.8 MB)
Let us know how things go!