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SmartTube is a free and open-source YouTube client for Android TV and TV boxes. It removes ads, supports SponsorBlock, works without Google Services, and is designed for large screens and remote controls.
Note: the developer recently disclosed a build environment compromise and has since rotated keys, rebuilt the environment, and added additional verification steps. Users should update to the latest version and verify sources. GitHub: https://github.com/yuliskov/SmartTube
I wish there was something like that for Apple TV.
I ended up building an app that's literally just a button that takes a link in my clipboard and passes it to yt-dlp, which then downloads the video in the best format for Apple TV to my Jellyfin server. That's the only way I have of watching YouTube on Apple TV without having to tolerate half a dozen ads per fifteen minute video.