Update: I went to reproduce the crash to pull some logcats for the dev and for whatever reason the Huestacean app is now working natively on the Shield and is no longer crashing every time. I have fast sync turned on and turned center and side slowness all the way down and the response time is great! I will try to post another video this evening. Please try the Huestacean Android app first if you are going to try this.

Here is the video of it running Shield TV: https://www.youtube.com/watch?v=HE_Eg25kjNI the response time is much better. I still have crashes once in a while but I think it has to do with Android trying to close it, when that happens i do a force close and just restart it.

OP: I had seen one post in this subreddit about syncing hue lights to your Android TV and after much trial and error I have finally found a way to do it and figured I'd share. I will give two methods as some may be able to get he native app to work or it may get updated. For me it crashed every time.

Easy Sideload Method: Go to https://github.com/BradyBrenot/huestacean/releases and download the latest Android release and side loading it on Android TV.

Another app I have heard mentioned is Hue Ambilight which is available in the play store. You can install this from a browser on the Shield TV. I also did not have success with this app, it seemed to fully close and not continue running in the background.

Workaround Method: If neither of these apps worked then this is the best way I found to work around it, you must have a PC available to do this.

Download the Windows app of your choice to capture your PC screen, the link above to huestacean is the fastest to me, I also purchased HueDynamics and have tried Screenbloom. HueDynamics is a good all around app for hue but I am currently using huestacean as my screen capture method when gaming.

Download the Vysor App https://www.vysor.io/# for your computer and sideload the app on your Shield TV from here: https://www.apkmirror.com/apk/clockworkmod/vysor-android-control-on-pc/vysor-android-control-on-pc-1-0-0-0-release/

On your Shield make sure Network Debugging is enabled in Developer Options Open the Vysor App on Shield it will take you through some screens. Open Vysor on the PC you will see a link to install ADB drivers toward the bottom, install those as instructed. Restart Vysor, Input the IP address of your Shield by clicking the little button above the word "Settings" (this can be found in network settings on the Shield) Once you input this you will get a popup on your Shield to allow the connection, You will see it show as a device.

Now you need to go to the Windows app that you chose and pair it to your bridge and choose the monitor which you will be having Vysor open on, set Vysor to full screen and you will now have an ambilight alternative. This is very low latency for me as Huestacean uses the Hue Entertainment API plus I am on a gigabit wired network. YMMV

Here is a quick demo of this working on my setup. https://www.youtube.com/watch?v=XLF1QXZqWZI

Edit: *One thing I forgot to mention, many paid apps such as Netflix, HBO and others do not allow any screen capturing, to get around this you would need root and Xposed, I have not attempted this yet but will update the post when I do.