I went from generation 1 to 2 only when apps refused to work.
The 3. Generation doesn’t do any features different for me.
I’ve had some issues with temperature shutdowns and unreachability on all of them, maybe not so much on 3. genenation. It may be the cause of your issue, but I’m not sure.
I mostly had that issue on gen.2 but I’ve also swapped phones and moved my WiFi in between so I’m not sure. When I had gen.2 on our primary TV, it would fall out after many (8+) hours, at which point the dongle would be smoking hot. I could usually fix it by cooling it (waving it out the window 😃 )but eventually I upgraded to gen.3 and haven’t had that issue since then.