My system is a RPi 4 with 4gb.
I let it update to OS 5.8 last night (14 December)
I’m not sure what “broke loose” on your system. Is MQTT working?
On mine, devices trying to connect to MQTT on hassio.local stopped connecting.
The errors on the sensor devices look exactly like they did last week with this error
https://community.home-assistant.io/t/mdns-name-changed-with-4-13-os-update/226843/4
Except hassio.local still works for the user interface, so it’s not the mDNS, or at least, I don’t think it is.
Devices connecting to MQTT with and IP address still work. Devices connecting to hassio.local don’t.
Without sensors, my system is effectively down.