The CAGED system is a way of visualizing the neck using inversions of the same chord. Then you associate scale positions with the inversions. You won't learn any theory from it. It's patterns.

Sitch is a Youtube guitar teacher. I watched a vid of his where he said that blues players learned the shuffle rhythm because they heard "cowboys" on horses clopping by. If that is indicative of the information he offers I'd be wary of any "method" he might be teaching.

Ears are the ticket when it comes to improv. Most start by learning the minor pentatonic scale then just blowing that in the key of the song. Later they learn the major pentatonic. Then the major scale, arpeggios, modes, then maybe the modes of the harmonic minor, etc

But again -- ears are everything. Jam along to the TV, the radio, whatever. Forget shapes and try to use your ears to find the melody and treat the neck like a trombone slide. Find the 1st note, then figure out the interval to the next, etc. That is what will make you a good improvisor, 'cause you could know all the theory in the world and still suck without ears.