I just noticed this bug today. I tried playing a bunch of mp4 files which have been played to death in the past. After 3 files play I see a pop up saying “Cannot play specified file format. See supported formats” or something of the sort.
I see that this was an issue in the earlier versions of firmware, but I’ve never faced the problem then.
On restarting the WDTV live it works fine for a bit and again starts acting up.
Suggestions/fixes? I tried resetting the device with no luck.