The fix is very simple. I am just posting it for anyone interested.
In the file /wp-content/plugins/all-in-one-video-pack/lib/KalturaHelpers.php
, change the line 314 from:
if(isset($htmlPlayerUrlParts[3]) && substr($htmlPlayerUrlParts[3], 1, 1) === '2') {
to
if((isset($htmlPlayerUrlParts[3]) && substr($htmlPlayerUrlParts[3], 1, 1) === '2') || strpos($htmlPlayerUrl, "{latest}")) {
Save the file and that’s it.