So glad to have found this forum as the comments on the Kobo Facebook page mostly deal with issues faced by Australian and UK users. Will stay away from this update until all issues have been ironed out as I usually get very unlucky with software updates.
On a side note I saw some people having problems with the way covers are displayed for side-loaded books; on here though there's an actual explanation on how to edit the epub code to solve the issue. However, before finding this forum I accidentally discovered a simpler solution - convert epub file into mobi and then send the file to the Kobo (all using Calibre). That does the trick