Is it possible to play Youtube videos playlist in Roku channel using Youtube V3 API documentation?

Yes, there are ways but against Youtube TOS and I am sure against Roku's TOS.

In short you need to extract the actual video url and not the embed code.

Not sure what your skills are but you can use youtube-dl and run something server side to handle the redirect.

Something like this here. http://shadtv.onthewifi.com:8080/parse/dlh.php?id=VideoIdHere
Working demo here. http://shadtv.onthewifi.com:8080/parse/dlh.php?id=C2Jv8e-L6BQ