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Converting .css.liquid to .css not working anymore?

Shopify Partner
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I have an issue on two customers store (so far) where css.liquid file will not convert to .css file.

My question is:
Is this an error that affects only these stores I am working on or Shopify globally removed this functionality?

Since first question would be "do you have error in your code":
I have tried with simple 3 lines of code in newly created file just to check if the issue was not some error in the css code, and it still will not convert.

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