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The third generation Apple TV no longer allows you to watch YouTube directly. You can still do this, but through a third-party device.

YouTube is no longer supported on third-generation Apple TVs. The device was released back in 2012, and it lacks the App Store, since it is not based on tvOS. However, this is unlikely to reassure owners who would like to continue watching YouTube.

Apple TV of the third generation no longer allows you to watch YouTube directly.  You can still do this, but through a third-party device.

However, one option still remained.

The YouTube app is no longer available on Apple TV (3rd generation). You can still watch YouTube on Apple TV 4K, Apple TV HD, iPhone, or iPad. With AirPlay, you can also stream YouTube from your iOS device directly to any Apple TV (3rd generation or newer)

That is, you can use AirPlay to continue using YouTube on a negotiated set-top box, although this will require another device in the Apple ecosystem. The reason YouTube is no longer supported by the device is because of the software platform. Since the set-top box does not have an App Store, it is impossible to update applications in the usual way today. And to do this separately for an almost 10-year-old product, apparently, is inappropriate.

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