I wish it were more effective in removing Youtube ads on my kids' iPads, but I understand it's a tall order. At least it gets rid of ads in most other apps.
Try Microsoft Edge. Its built in ad blocker works for me with Youtube on my iPhone. I block ads at the application layer, DNS based ad blocking doesn’t really do it anymore and can create another troubleshooting surface to consider when it breaks something.
-- mostly: out of about 7 videos, an ad was shown to me at the start of one of them, but that is much better than mobile Safari, on which and ad is shown to me at the start of every video I start.
Thanks for the tip.