Yesterday’s update for the VLC media player for Windows Phone did not do much to address the crashing bug introduced with the update before.
Now the team appears to have managed to get a 3rd update certified in record time, which is now available to download.
A new version (2015.109.1912.4035) is working well so far in my testing, with album art and background audio also working.
Download it here from Windows Phone Store for free.
Thanks sp4rt4n for the tip.