Apple TV 3rd generation problems after update to software version 7.6

I resolved my problem.  This is how I did it. 

Go to ISPW website and download software for your Version Apple TV.  The software will open iTunes.  There are several Apple TV softwares available on this site. Choose the correct software for your Apple TV.  If it is the wrong software, it will interrupt the process.  I chose the software listed and it worked.  AppleTV3,2_8.4.3_12H885_Restore.ipsw. 

Before you disconnect your Apple TV from your TV, turn your Apple TV ‘Automatic Software Update’  to ‘OFF’ or ‘No’. 

Connect Apple TV 3rd generation to Mac or (windows with ITUNES).  (You will need a micro USB to USB data cable for this connection. Make sure it is a data cable.)

Connect Apple TV to power to electrical outlet.

When prompted to ‘RESTORE‘, press and hold the ‘OPTION’ Key on the ‘Mac’ keyboard while you press ‘RESTORE’. You will see the file you downloaded.  Select file to start the restore process.  Do not interrupt the ‘RESTORE’ process. 

You will be prompted to disconnect Apple TV when the ‘RESTORE‘ process is completed.

Go to your TV and connect the Apple TV and follow the prompts on the TV screen. You will be prompted to update to the latest version of Apple TV software. “DO NOT CHOOSE UPDATE!” (Or you will have to do this process again.)

I've just checked again and it's the SHIFT key you need to hold while you click restore. It will then come up with a box asking where the file you want to restore is. I assume you have downloaded the correct file for the restore? Itunes won't have it.

I've been through the process 3-4 times because after a power cut the AppleTV decided to update itself even though Auto update was off, the other two time were because the Appletv had been left on with no activity and decided to update itself.

I had to put mine in recovery mode for it to be seen by my Win10 PC, once it shows in Itunes, hold the SHIFT button and click RESTORE at the same time and it will open a window asking where your restore image is.

I downloaded the previous version from IPSW and connected the Apple TV to the laptop. It wasn't seen. I then put the Apple TV into recovery mode and connected to the PC. It then showed up in Itunes as being in recovery mode. You then press and hold the shift key and click the restore button. It will then ask you what file you want to use(if you don't do that it will restore the latest version). You need to be patient and let it do it's thing. Takes a while and it will appear to got through multiple restarts. Once complete you will basically have a new unit that needs setting up so make sure you have all of you logon details available. The first thing to do is turn off automatic updates and make sure everyone in you house knows they should not update if the see the message. We've had the message a few times.

FINALLY!!!!

There is an update now that fixes the YouTube pause problem!! Just Go and updated your device over the internet.

Thank you apple!!!

It is the apple update/software 7.6 Some people have figured out how to downgrade to 7.5 and that has solved the issue.

I can’t figure out how to do it on my pc as it doesn’t give me any options when I restore it. An apple pc/Mac seams to work better on this. There are some videos on YouTube that explain it.

If you have the Apple TV connected to your PC and seen by Itunes hold either shift or CTRL(can't remember which it may be they both work) when you click restore and it will ask you for the image you want to restore. You need to make sure you have the correct image for your version.

One thing to be aware of is even if you have the auto update turned off it will keep asking you and the default option is to update so it will do it anyway and you'll be back to square one. I've had to restore mine 3 times and of course every time you have to put all the passwords for the services back in to get back to a usable state.

When it asks you what file you need to select the file you downloaded, it won't be there by default you need to download it. If you haven't downloaded version 7.5 then you won't be able to restore to 7.5.The instructions for doing all of this are in this thread you just need to go to page 1 and read through everything

The other workaround Is to Airplay YouTube to your Apple TV

Stream content using AirPlay with Apple TV - Apple Support

Ok, just found it. You need to hold the key "alt" and click on "Restore Apple TV..." It will open a Finder window so you can choose the IPSW file you want. After that you get the message :

"Apple TV Recovery Mode

Your Mac is preparing to restore the software on this Apple TV".

I'm waiting for the outcome...

It's a widely reported issue. Apple hasn't responded as yet, but the more people tell them via their feedback form, the better. I submitted a report yesterday so it would do no harm for you to do the same. They won't respond in person, as it's simply feedback but it's the best way I think to 'encourage' a firmware update. You can submit the information here.

https://www.apple.com/feedback/appletv.html

That is NOT a solution. It's telling people to reflash their Apple Hardware with firmware that is stored on unknown 3rd-party servers. Downgrading with this unsanctioned software puts customers safety, the hardware, and Apple iCloud security at risk. In addition, it creates new compatibility problems that further confuse and add to the problems.

For now, the best solution is to set aside your Apple TV 3 from daily use until Apple issues a formal fix that is verified safe ad secure. Also, there is this official link to share your feedback: https://www.apple.com/feedback/appletv.html

Thanks for this, I’ve submitted feedback, it only took a couple of minutes, I’m guessing is the only way that we’re going to find a genuine solution.

Based on my experience there is no need to put your Apple TV aside, you just have to use the YouTube app on your phone to playback content on the Apple TV, then you can pause and resume playback without any problems.

Press the 'option' key, next to the command key, while you click on 'Restore Apple TV...'

Mine updated today as well, even though I set it to "Do not update automatically". This is the third time I am downgrading it to version 7.5 and will continue to do so.

I would advise anyone with this issue to log with Apple, I've just gone through the process and they rang me back very quickly. It would appear from what the support person said that the more people who report this the more chance of it being fixed.