appleTV 3 generation,

The issue (applicable to 7.60 and 7.61 firmware versions) is well known within this community. There currently isn't a solution. Apple hasn't made any comment, that I'm aware of, but many have notified Apple of the issue via their feedback system.

While you could unofficially reinstall 7.5 I'd say it's not worth the effort as your ATV3 will auto-update itself when it gets the first opportunity. Your best/only option really is to avoid using pause (within YouTube) until Apple hopefully issues an update. The pause issue is specific to the YouTube app, won't affect Music etc.

If it locks up you can either unplug it and it will unfreeze after rebooting, or it will auto reboot after a minute or so if left untouched.

Hi, Mine was just solved by updating to 7.6.2

I had not the same problem on my Apple TV 4K, only on Gen 3