Interesting enough, the restriction has now gone though according to the report by MacRumors. The Apple-oriented publication has tested it on Safari that is running on iOS 14.0.1:
— MacRumors.com (@MacRumors) October 2, 2020 We have tried it ourselves and are able to verify the findings by the Apple-oriented publication. Not only that, we have also verified that the PiP feature worked on Chrome and Edge too: Since neither YouTube nor Apple has released any official statements regarding this, it is not known whether the return of the PiP feature is an actual reversal by YouTube or an unintentional result from a recent update. Regardless of that, we do hope that the feature will be made permanent for all users regardless of their YouTube’s subscription status. (Source: MacRumors.)