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I always watch YT in firefox with ublock origin on, it seems to work 100%. It seems like pi-hole would work well too, but my router insists on providing a backup dns server when my pihole fails to find something... Need to go get a new one, preferably meshable.
- configure each client device accordingly (very inconvenient, but mentioning it for completeness)
- configure your router's DHCP service to tell clients that the DNS server is [IP address of pihole] instead of [IP address of router]
- configure your router's upstream DNS to be [IP address of pihole] instead of [what your modem offers] and leave the DHCP service alone (clients use the router as the DNS server)
I suspect you're using the third way, based on the issue you're having. Try the second way instead, so the router isn't even processing client lookups. (Maybe not all routers offer this. I use pfsense which does.)
Anyway, my pihole doesn't block YouTube ads... Can I remedy that?