Yes, this does seem to be a regression on the Umbraco side it was confirmed and fixed by the team. , the fix will be included in version 16.1, Further fix to configuration classes using ISet, resolving regression with custom 404 pages by AndyButland 路 Pull Request #19573 路 umbraco/Umbraco-CMS 路 GitHub so it should be available in that release 16.1馃槉
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