You shouldnt need to proxy anything, there are in browser js muxers that can splice separate video/audio streams into one, or find jsvideo player capable of playing it directly.
The most likely reason for the error is badly decoded signature. YT uses &sig as a "crypto" access token (lasting couple of hours last time I checked). I have zero trouble playing dash videos in standalone mplayer (after manually extracting two video audio sources and decoding proper signatures).
Ok, so CORS prevents from manual muxing/proper DASH player playback. How about two separate video audio tags with javascript synchronized playback/seeking?