Was the graphics update supposed to remove all lighting from the game?

does anyone else feel that the graphics update to PSO2 has essentially ruined how things look rather than feel like an improvement? take for instance that everything in the game is the wrong lighting now (or has no lighting whatsoever), everything feels washed out now and worse.

if i recall there were problems in JP with this update so we didn't get it until NGS, but i guess removing the different lighting from the game is apparently intended behavior and not a bug? it's really prominent during urgent quests, like everything is darkened or lacks any kind of lighting effects? but NPCs like Xiera are where it hits hardest:

alt text

Now say it 7 months ago

It was a total downgrade in graphics in base I swear.