12H885 didn’t work for me. I tried it on two different Apple TV 3’s. It said cannot be installed because it’s not compatible with my Apple TV. I’m also on 7.6.1. Somehow my ATV also circumvented auto-update being turned off and it updated itself to 7.6.1 from 7.5. It’s only when you encounter this issue do you actually realise just how many times you pause YouTube on your ATV.
LOL. I notice the same thing. Hitting pause also brings up other options (subscribe, other related videos, etc.) which are now unavailable.
Attempt no. 2 to register. Don’t delete me this time. 
Yeah the options for subscribe, other related videos, etc. are not showing up because the YouTube app itself freezes. It crashes the system back to the Home Screen after about 30 seconds to 1 minute.
(seems my original username was auto-reinstated, handy)
“Also note that you must use the proper USB-C cable, there are two types. One is a power-only type cable and the other one is both power and data so make sure your USB-C cable is for both power and data.”
That might explain mixed success I have with connecting SSD drives to my Macbook. Is there a way to tell the difference (eg System Report on the Mac)? Or do I eliminate them by trial and error?
Same here. When I used the link shared above, I got this error:
The answer is simpler than you realize. There are two different models of the third-generation Apple TV. AppleTV3,1 is model number A1427 (released March 2012). AppleTV3,2 is model number A1469 (released March 2013). Look on the bottom of your unit or in the Settings->General->About screen to see which model you have.
There are two different links to 12H885, one for each model Apple TV. You need to use the one that matches your hardware:
- AppleTV3,1 (A1427): Download iOS 8.4.3 (12H885) for Apple TV 3 / IPSW Downloads
- AppleTV3,2 (A1469): Download iOS 8.4.3 (12H885) for Apple TV 3 (2013) / IPSW Downloads
My unit is a 3,2 so the download for 3,1 failed to install. But the download for 3,2 worked.
Be sure to immediately turn off automatic updates because it will try to upgrade itself to 7.6.1 soon afterward. With auto-updates disabled, it will still nag you to upgrade (and you have to remember to click “Later”, since there is no “no” option.), but at least you can pause YouTube again.
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Thank you, David C. Finally!
What confused me more than anything is someone in this thread muddied the waters by claiming Apple were no longer signing 7.5. That threw me off the trail after my first attempt failed.
Anyway…
The coloured text is an optical illusion.
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I see that 7.6.2 has been released:
Anyone had any luck with this one 
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Tentatively looks good for pause/play!
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update 7.6.2 seems to have returned functionality in YouTube
Fingers crossed
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I just tried it today. Seems to work properly.
I still don’t like the YouTube app compared to the one on an Apple TV 4K or a Roku box, but I wasn’t expecting that kind of an update.
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Good to know, a “safe update” 