Apple TV YouTube App Rolling Out 4K Support
One of the new tvOS 14 features highlighted by Apple was support for watching 4K videos in the YouTube app, but when tvOS 14 launched, Apple TV 4K users quickly noticed that support wasn't available.

That appears to be changing, as there are reports on Reddit (via FlatpanelsHD) that support for 4K YouTube videos is starting to roll out. Multiple users have reported seeing 4K playback options in the YouTube app on tvOS 14, tvOS 14.0.1, and tvOS 14.2.
4K support has not yet rolled out to all users, however, as in our tests, we were not able to access 4K YouTube content and continued to have a 1080p limitation. While 4K content appears to be available, those with access are still not able to enable HDR, and 4K videos are limited to 30 frames per second.
It's unclear if the lack of HDR is temporary or a limitation on the 4K Apple TV, and it's also not known when 4K content will be available for all. It seems to be rolling out though, so there may not be too much longer to wait. YouTube in September said that Apple TV 4K would support 4K YouTube playback "soon."
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