To be honest, I didn't even know YouTube Red existed until I found Cobra Kai...
As for Miguel, I'd be disappointed if they made him a villain...I think his transformation towards the end of the season made sense, partly because of Johnny's karate teaching methods, but also because of Miguel's own daddy issues; he doesn't strike me as a douchebag so it would be quite a bit out of character, I think. I also hope that Cobra Kai crew will still be the main protagonists, and that the writers will not try to push the Larusso/Robby narrative as the new Mr. Miyagi/Daniel story instead. Kind of have a feeling that Larusso and Johnny might have to team up against the you-know-who (don't want to spoil it for someone else, hehe).
The best overall transformation must be Hawk, hands down