[Android Q&A, Help & Troubleshooting] drathborne:
This post is a slightly edited mirror of the original post with the fix on the Android Forums. We are crossposting it to XDA to help spread the word to all users looking for a fix.

WARNING this fix does require rooting your phone, but step by step instructions are provided as well as a tutorial video

Background

Google released an update to Google Play Services in September that prevented many users from using several popular Google Apps (Hangouts, YouTube, GMail, Google Play Music, Android Pay, etc.). Neither Kyocera or Google did much except offer the "temporary fix" of downgrading Google Play Services until the problem was resolved. Because users had been waiting with no response from Kyocera except "we are working on a fix", Ryan Radford (radfordra) worked at the problem and discovered a permanent solution. Because the fix was originally shared on the FreedomPop Hydro Icon forum, I reposted it here and reformatted it slightly.

It then became obvious that the post was getting buried in the original thread (post 308) so I decided to repost the soultion as it's own thread to keep it at the top.​

Credits

Fix Creator

Ryan Radford (AndroidForums: radfordra)​

Contributors

TexCoder (FreedomPop, Kingroot method and SuperSu replacement)

FoneFuzz (Found SuperSu-Me)

Chester H (step by step video)

Me (post maintenance)​

Utilities

Chainfire (SuperSu)

MrW0lf (Kingroot/Kinguser removal script)

Kingroot (for the easy one click root)

ES Global (ES File Manager)

Jack Palevich (Terminal Emulator)

Adam Loannides (SH Script Runner)​

Instructions (new video of the updated process by Chester H)

Obtain root with KingRoot (adapted from original root method on FP forums by TeXcoder)

Replace Kinguser with SuperSU

Preferred: (no conflicts with Kingroot)

download Mr.W0lf's shell script

unzip script and put the mrw directory on your SD Card

download SH Script Runner and open it

press the far right button in the top menu, select Load and open root.sh from the mrw directory on your SD Card

press the middle button in the top menu to enable superuser mode

press the left button in the top menu to run the script

in the popup, (Allow) superuser permissions for SH Script Runner

wait patiently for SuperSu to open, let it update the Su binary (OK) and use (Normal) mode

if SuperSu asks to remove conflicting apps, hit (OK)

allow SuperSu to reboot your phone and Kinguser will be uninstalled and replaced

Alternative: using Mr.W0lf's shell script and a terminal emulator and following this guide

you may need to manually set Root Authorization for Terminal Emulator to Allow in KingUser/KingRoot

(video of the alternative process by Chester H)

If Nothing Else Works: SuperSu-Me (thanks to FoneFuzz for finding this)

success rates are low and several users are stuck at black screens in the app, forcing them to use options 1 or 2

Download ES File Explorer File Manager

Enable the Root Explorer option in ES File Manager

in the top left corner of the app, click the button with three lines and scroll down

you may need to manually set Root Authorization for ES File Manager to Allow in KingUser/KingRoot

With ES File Manager, open /sysprop/kcjprop

Vibe users do not have this directory, see step 6

Copy libpredtm.so to /system/lib

Vibe users must download libpredtm.so

Icon users can copy the file from /sysprop/kcjprop or download libpredtm.so for convenience

Reboot for good measure (not strictly necessary unless using the Vibe)

Enjoy using your previously broken Google Apps

Fixing Android Pay (it will not let you set up if you have root)

Open Chainfire's SuperSU

Go to settings, uncheck Enable Superuser

Open Android Pay and complete setup

Open Chainfire's SuperSU again, recheck Enable Superuser

Note About Kingroot

Replacing KingRoot is optional but recommended. If you plan on unrooting after transferring the library it is easier to just use Kingroot to get root, open the Kinguser app and enter the Root Authorization menu. Allow root permissions for ES File Explorer, then you are able to copy libpredtm.so into /system/lib. After that reopen Kinguser and click the Settings Gear in the upper right, click Root Authorization setting and click Remove root Permission and follow the prompts.​

Removing Root (if you do not want it after the fix)

Kingroot: Open the app, press the Gear button in the upper right, press "Root Authorization Setting" and then press "Remove Root Permission". In the popups, press "Continue" then "OK". (Video)

SuperSu: Open the app, go to Settings, scroll down to the Cleanup section, and press "Full unroot". Press "Continue" in the popup and restart when the app closes.