Couple of days ago, I noticed a new issue with YouTube on my Nexus 5. I was not able to stream YouTube through Wi-Fi on my mobile. It started showing the error message 'Connection To Server Lost Touch To Retry'. The ad that you get before the video was all working fine. The issue was with the actual video itself. Nothing happens even if I touch it multiple times. I started searching the internet for solutions.
Some of the solutions were to change the Wi-Fi settings, uninstall updates, factory reset etc etc. Among them, was one interesting solution 'Just wait it out', which I didn't give much attention to. So I tried changing the Wi-Fi Settings, uninstalled the updates and nothing really changed. The issue was still there and I was getting the same 'Connection To Server Lost Touch To Retry' error message. I was not sure about resetting the phone as I will lose all data and the pain of customizing all of them from scratch was not really appealing to me. I would rather live without YouTube on my phone.
Days passed and nothing changed. On the 4th day or so (by that time I had already uninstalled the updates, YouTube was running on the factory version) I tried opening the video and all of a sudden it started working. The phone fixed the issue itself. Then I remember one guy advising all others to 'Just wait it out'. I think he was right. But I was in a panic mode at that time, that I didn't really listen to his advice. I tried the more 'workable' fixes and it didn't solve the problem for me.
If Wi-Fi settings change, uninstalling updates and nothing fixes 'Connection To Server Lost Touch To Retry' error, the best bet is to wait for at least a week. The phone will fix it on its own. At least that is what I learned from my experience (and the other guy's).