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Software update? Same thing happened to my Apple TV...
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have you tried extracting the old airport utility thing from the install container? I had same issue and got it working in the end. But admittedly that was mavericks. Can still play music through it now on all the Yosemite devices in the house though.
e: just tried it. yeah it's fucked.
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Give it a Google, someone has made an old version airport utility able to run under newer OS X. Got a first gen airport express here, works fine with Yosemite
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@TRA is it the setup thats the problem?
If you're able to, simply create a bootable USB volume (drive or even memory stick will do) containing Snow Leopard and Airport Utility 5.6. Boot into the Snow Leopard USB (restart and hold down option key), launch Airport Utility 5.6, and configure the Express. When you've done configuring, simply specify the original volume containing Yosemite as the startup disk (under System Preferences), restart, and boot back into the Yosemite volume. I did it this evening and it works fine.
https://discussions.apple.com/thread/6627711
Otherwise airfoil could be worth a try.
@ExTra good luck with the email, I would have lost my shit and smashed something a long time ago
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@TRA
The only slight issue is that all those issues could easily, and would most likely occur with any other brand or flavour of laptop.
It shouldn't be happening with a Mac and they really should have just replaced the thing. Saving everyone time. I've generally had good experiences with Apple staff and they've been fair with replacements etc.
The whole genius bar thing is total wank though. I've had better luck with apple approved independents.
On a side note, Screw you apple! Tried my old Airport express (that still works) last night - just to pipe some tunes to another room. Nope. Yosemite wont work with the old hardware. And I can't get an older Airport utility to run. More perfectly good electronics consigned to landfill.