Update (May 18th, 2017): Airfoil for Mac 5.6 restores direct streaming to all models of Apple TV. Get the latest version now from the Airfoil page. It is now safe to update your Apple TV to the latest tvOS.
Summary: To prevent loss of connectivity with Airfoil, Apple TV users should not upgrade to tvOS 10.2 at this time.
On March 27th, Apple released tvOS 10.2 for the latest generation of Apple TV. Changes made by Apple in this update have broken Airfoil’s ability to transmit audio to the newest generation of Apple TV. This issue affects both Airfoil for Mac and Airfoil for Windows, and prevents Airfoil from successfully sending audio to the Apple TV. If your Apple TV is still running tvOS 10.1.1 (or lower), stick with that for now to maintain connectivity with Airfoil.
We’re currently researching this problem, and hope to work around Apple’s changes with a future update. In the meantime, Airfoil users should avoid tvOS 10.2, sticking with their current version of tvOS instead. Be sure to disable automatic updates on the Apple TV as well. You can do this by going to Settings -> System -> Software Updates, and toggling “Automatically Update” to Off.
More to Come
We’ll post more news as soon as we have it, so watch this blog, as well as our Twitter account. When a new version is available, Airfoil itself can alert you, so be sure Software Update is on in the Preferences.