I have the same issue on my Apple TV V2 firmware 4.4.4
The Apple TV is jailbroken with Seasonpass and NITO is installed.
But on my MAC i cant choose for the Apple TV only the MACs hardsdrive, ITUNES find the Apple TV without any problem.
Airplay was enabled but when looking on my ipad it actually want working,(no airplay icon showing up) several reboots of my router later I managed to get airplay working and then the install worked fine…