Same issue
That update really made a mess of everything. First it deleted all my books and settings.
When I tried to connect to Calibre, I got the Google license message. I did finally manage to connect once to repopulate CC but when a few books were missing, I had to use the content server to retrieve them.
After my books were once again in CC, I discovered that long-pressing on any book to open it resulted in a DRM message... every book, both free and purchased. They all open directly with no problems if I bypass CC.
I have been using CC for a very long time (I think it was actually free at Amazon when I first got it). Never had a problem before but I certainly won't be updating it on my second Kindle.
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