This is what worked for me. Like another post regarding playlist elements, but I just changed the API call. Hope this helps.
// get the itmes playlist
$data = file_get_contents("https://www.googleapis.com/youtube/v3/playlistItems?key=< YOUR API KEY >&part=snippet&playlistId="<Put your playlist id here>");
// decode the response from youtube
$json = json_decode($data);
// if you want to see the full answer, use print_r ($ json);
// each element in the response corresponds to a video in the playlist, therefore it allows us to get the first video (points [0]) to get its fragment and corresponding thumbnails, and we will take the url for the default size. If you want the second video to use elements [1], etc.
$video_thumbnail = $json->items[0]->snippet->thumbnails->default->url;
// set the video tag alt as a description of the fragment
$video_alt = $json->items[0]->snippet->description;
// echo image URL to image tag
echo '<img src="'. $video_thumbnail .'" alt="'. $video_alt .'" />';
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