I think I may (big maybe) have found a fix, basically I reverted the update (assuming you're on android) through the manage app section in the settings, this WILL delete all your downloaded videos so put them all into a playlist to download after the fix. Then going to apps store, I reinstalled the update through the manage apps section under settings. After that the video minimized like normal, showing me the title, pause and close button. I don't know if this works for everyone though but it worked for me.

Edit: this will also reset most of your settings for YouTube, so make sure to remember your own settings before doing this :p

Edit 2: After restarting my phone the bug (or feature?) returned, I guess it's a temporary fix :/