[Gear VR] Global menu issue with UE 4.16.2

After the last update of Oculus software / services (or next to the last) I noticed that going into Global menu (long press on the Back button) and coming back into the app/game restarts the app, instead of going to the moment where one left to the Global menu. Not only Oculus restarts my app, it also experiences crashes in various services. One time it even got stuck running my app outside of Gear VR and nothing I could do to restart my phone or exit the app (had to put it back into Gear VR and do some black magic to be able to quit).

Using UE 4.16.2, Galaxy S6 and Android 6.0.1.

Has anyone experienced such issue?

P.S. Got a report from someone with S7 on Android 7.0 that same issue happens even with short press of Back button (when running distribution release build from Release Channels). In both instances Oculus restarts UE4 apps on Gear VR.