Multisite Privacy default settings not deploying to new blogs

I have Multisite Privacy installed and activated on my Multi-Network/Multisite installation. We have chosen to initially restrict access on all new sites created to registered users but allow them to change the settings at their discretion.

We tested this and everything worked correctly back in November and December.

This past week we upgraded the systems to WordPress v4.7 and the distribution of the default settings does not seem to work any longer. Has there been any reports about this?

I’ve done some searches through the support blogs but have not found anything similar. the only other item that caught my eye was multisite privacy compatibility with Pro sites (which we also run). It was an older article.

Any thoughts on this??