I should add that it does work when posting from a browser on a computer within the WordPress dashboard, but when posting the exact same content from the WordPress iOS app on the iPhone, it does not work. We will primarily be posting from the iPhone.
For example, the content of one post is exactly this:
...with an old skit!
https://www.youtube.com/watch?v=D_bq9mpyKPI&feature=youtube_gdata_player
When posted from the browser, the plugin makes the thumbnail. When posted from the iPhone, it does not.
I have another plugin (Easy Add Thumbnail) that auto creates featured image from images in posts (works from browser or iPhone), but I was hoping this one would work for when we post a YouTube video.