It certainly does but not the way you think. A torpedo doesn't penetrate a pressure hull like a shell through armour. The whole basis of that clip is a US Mk 48 penetrates the pressure hull and explodes in the Kursk's bomb shop causing a fire which sets off the other weapons.
2 things stand out.
1) A Mk 48 won't penetrate the casing and pressure hull as I've previously stated
2) This fire it allegedly started would be put out by the Barents sea coming through the, somewhat large, hole the exploding Mk 48 left behind.
I'll stick with the hypothesis that one of the dodgy hydrogen peroxide fuelled torpedo's onboard exploded, causing a fire which resulted in a sympathetic explosion of the other weapons.
Got to agree with the wrecker, torpedos just don't work that way. Remember being on patrol when she went down and feeling for them, until baser instincts kicked in when we found our relief have been volunteered as the Mothersub for the DSRV and the grumbles about how long extra we'd have to stay out started. Then relief when the Russians turned it down. True to say sympathy doesn't run too deep sometimes.
Another hypothesis kicking around whilst I was a BAE System was that there was a touch of 'crazy Ivan' going around with Kursk and two USN boats whilst she Kursk was exercising with the rest of the Russian fleet. Not long after Kursk went down the two boats were seen in a Norwegian fjord at some non descript shipyard cos one of the boats was damaged. Allegedly Kursk had scuff marks down one side intimating she possibly had a skirmish with something. This could have accounted for the accident on board. They were shuffling fish about and they got thumbed by the Yankee boat, the fish fell of the rack and bish bash bosh explosion or damage to the fish sufficient for the hydrogen peroxide fuel to leak and explosion. Any way all conjuncture.