App Embed button disappears after pushing extension

Hello, we have been successfully using the new App Embed button in the theme settings page for a few weeks now, however today when I pushed changes to my app extension the App Embed toggle disappeared from theme settings on all stores running my app.

The steps I took were:

  • with the Shopify CLI I ran shopify extension connect to connect to my dev app extension. The .env variables were correctly updated

  • I ran shopify extension push and successfully pushed the app extension update.

  • I published the new version of the app extension as a minor update.

Now all existing stores and new installs do not have the app embed button in the theme settings:

As far as I can tell everything is working correctly:

Please help!