Same problem with my Verizon M7. Recently used one set of earbuds on flight which worked fine, then on return flight neither pair of earbuds I had with me worked (but they worked fine on the jet's audio).
Next day at home, neither set of earbuds worked; neither did a pair of earphones. As I was trying to figure out the problem while playing, with PowerAmp, an album I'd loaded on the M7, I got a phone call which I answered. As soon as I hung up after the phone call, the earbuds worked perfectly! Gotta be a software issue.