I actually signed up for an account here just to report this bug but glad to see I'm not the only one this is happening too.
In the mean time while it's still going on, I managed to find a work around. If you start a new game on any difficulty, it'll allow you to continue on your previous save, and the newly created save will then be treated as dead. Not sure what it could be related to but I've played in Sandbox this patch if that information is of any use.