I downloaded a fresh 4.0.1 and the exact version of AME uploaded here and installed. Pasted that link and its fine.
If you are getting the video code like above, AME is doing her 'thing'. AME3 takes what WAS a link in a [url] tag and puts it in the correct video tag for vB4 to process. AME3 no longer does the actual parsing.
Can you check your bbcode_video template to ensure that there is the correct youtube dembed code in there?
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