Plex Server is hosted on Synology DS220+.
I tried activate (read Paid to activate Plex apps using Google account) but still getting the same error.
Do I need to wait a while before I can play the video?
Before activating a the mobile client, there’s a 1-minute playback limitation. Your error implies that something is off/wrong with the actual playback (not an issue with the activation/limit). As for what that issue might be I can only guess…
What version of Plex Media Server do you have installed on that Synology of yours (the latest public release of PMS is version 1.23.2)?
Is this NAS running DSM 5/6 or 7 (7 is still a release candidate from Synology and having some issues with Plex)?
What version of the Plex client do you have installed on your Android device?
To be perfectly honest… updating the server won’t do that.
However… the restart that you did alongside the update probably did the trick.