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There seems to be a correlation between the "android system" icon that appears at the top, and media pausing. All media apps will pause. This is in 8.0, and the app icon looks like a status monitor tray also says what apps are running in the background.
Well I booted into safe mode. Most of the apps I use normally aren't available in safe mode, so I could only test YouTube and Play music. No pausing. I poked around a bit, and saw that I had disabled AVG awhile back, trying to figure this issue out.
With AVG disabled, the "X apps are running in the background" icon didn't show up. So I enabled AVG and rebooted normally.
Once in normal mode, the background info icon was visible again. I pulled it down and stared at it a bit. VLC popped up for a second whine I was starting at it, as "VLC is running in the background." Which could certainly cause my issue, as any media app that starts pauses the other media apps. No idea why As VLC did such a thing, but I uninstalled it. No issues so far. I'll report back in a day or so of this fixed it.
Uninstalled VLC, and everything was fine for awhile. Then it paused again. Hit play. A bit later it paused again. Hit play, pull down background app icon and watch it. This time it was Slacker Radio that ran for a second in the background.
Which begs the question, why are these apps starting in the background briefly? They don't stay there, it's just for a second.
I haven't had any pausing today, so it seems the issue is resolved by removing both VLC and Slacker Radio.