Hi Alex!

It does not appear to have been fully fixed by Firefox 88 for me at least, although the conditions have changed slightly, and the remaining broken behavior is now slightly different too.

First, to update my note above: media.autoplay.enabled.user-gestures-needed has been superseded by media.autoplay.blocking_policy, and setting the latter to 2 is now required to trigger the issue (as it manifests presently); with the setting at either 0 or 1 I haven’t been able to reproduce any variation of the issue.

Now, the video doesn’t get paused anymore, but the unmuting also does not work: clicking the muted indicator just always resets it back to muted, instead of actually unmuting.