Nexus 7 on 4.3 (cyanogen mod)
Nexus player on 5.1.1 (rooted)
have you been updating your apps via the app store?
youtube has been updated on all devices several times including the NP you may need to get the updated youtube apk for NP if you cant update via google play store.
if youtube is updated on both devices try reinstalling on both devices
the washed out effect is very noticeable on the homescreen, its tolerable in apps meaning its nowhere near as bad as the homescreen however can still see it in apps. also google is aware of it and is working on a fix