As a result of the new update, paladins can no longer cast spells. If they attempt to try, they receive a message saying they can no longer cast spells as they are no longer neutral.
Needless to say, this is pretty major for anyone playing a paladin. Have confirmed, applies to everyone playing a paladin.
EDIT: This has spread to other alignment based casters. Confrimed, all bards are now also unable to cast spells.
EDIT 2 - Druids seem all right. Wizards are broken as well, getting the same message.
EDIT 3 - final confirmation. Any character without a neutral alignment can no longer cast, regardless of caster class.