While I’m not sure whether or not my OLED deck had the same issue prior to the update, but I can say that I do not have this issue now with the OLED deck and have not had any issue with the 64GB or 512GB LCD decks that I have access to prior to or after the update.

The only issue I did have was with my new OLED deck not detecting my usb drives unless I put them into a usb hub and connected the hub, but the update fixed that.

Based on this, it might be an issue with either your sd card or your steam deck. I am not sure what testing you might have already done though.

Cannot even apply the update lol, getting stuck at 0% then giving error, restarting or updating apps in discover had zero effect on that