Pretty sure that is resolved in the next update, you can try to browse without a login from the lemmy.ml instance, they're using a pre-release version of the next version :)
Yes! This trend towards reducing the UI because they assume their user can't comprehend more "complex" words like "Customization", "System settings", "Advanced system settings", instead just opting to remove the settings entirely, or hide them behind categories and stupid drag menus 🤷♀️