Please read carefully and follow the instructions at the link I posted on restoring your Apple TV.
Follow the Restore option.
This will erase and reload the system software on your Apple TV. You will then have an ATV just like new and out of the box. You will need to setup the ATV like new. Refrain from setting up any Airplay pass codes or passwords and see how things go.
Modern electronics have rewritable chips to store the basic operating program of the unit. The cool part is the unit can download a new updated program and act like a different machine. The bad part is these chips can garble the program due to voltage spikes, drops, static etc. When this happens, the program is altered and computers being computers follow the new garbled version without question. Odd and unexpected behavior results. It's like getting hit over the head except the dizziness never goes away. Flushing the old program and loading a new copy clears out the possibility of this corruption.