Rather than a regression I would call it an undocumented feature, even if I agree that's a change.
The macro behaviour was previously automatically materializing handler for subtypes of a sealed trait (if possible), which could lead in some case to recursion issue at compile time, so that's no longer the default behaviour.
If you are sure there is no implicit recursion, you can enable it using the
MacroOptions.AutomaticMaterialization , as
documented.