does this component support embedding external videos sources like microsoft stream
Yes, it should be possible. Just set it up using ExternalResource.
Note, this add-on adds http range request support to Vaadin, which makes streaming of videos served by Vaadin serlvet better. This is missing feature in the framework. The client part is regular HTML5 video, which allways supports that. If you are using ExternalResource, it depends on the server whether it supports range requests or not. If it supports, then it streams well.