While normal map textures still show the preview as the normal lavender-ish color for normal maps, but the it seems like the generated mipmap levels are light-red, as visible in the lower project window texture preview icon. (screenshot attached) This causes everything in my world that uses a normal map to be excessively shiny/reflective, and lights bleed through walls and floors.

As a workaround, I can individually switch all my normal map textures to Box instead of "Kaiser", but then the world upload linter then warns about these and pressures me to let it switch them back to (the broken) "Kaiser".

I have had to disable DPID for my world for the time being.