This is in no way a permanent fix, and I warn you that on a bad day this will only fix the app for only minutes before it errors in again, but it's a very easy fix.

 

http://m.youtube.com/watch?feature=youtube_gdata_player&v=pb842GCRv8c&desktop_uri=%2Fwatch%3Fv%3Dpb842GCRv8c%26feature%3Dyoutube_gdata_player

 

If you can't watch the video because you are at work, swiping down the notification center only partially and then sending it back up severs the video connection of the app, forcing the app to reconnect to appradio once the bar is removed. This returns the app to the correct aspect ratio every time.