[Crowly]

Edit2: 1080p isn't working too

Thats an XBMC issue, not being able to play DASH video, https://github.com/HenrikDK/youtube-xbmc.../issues/33
If this is true "XBMC Gotham will never be able to play DASH", then this won't be solved until version 14, unless its possible to use an external player or something along those lines.
--

Replacing my password with a app password worked. If this is the way login is suppose to work, this needs to be made clearer. If password is set and login fails, then show an error message long the lines "Login failed, wrong username or password. Make sure you are using an app password".
The information about app password should be added to the opening post. In the other YT addon you will get an error message if you try to use an app password, so like me i think most users who tries this will presume its your standard google/yt account password you log on with.