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Ah, looking in https://zentalk.asus.com/en/discussion/60304/new-update-31-1010-041061 this seems to be an issue with the use of a VPN. I use a local VPN for AdGuard, so that may be the cause.
Sounds like what happened to my phone, after it received the newest security update and it rebooted. Mine died completely. I have sent it back to the place I bought it from, who sent it to Asus. Asus said after extensive testing what I dreaded: my phone was dead. They couldn't restart it either. So Friday a brand new…
I had that as well. You can disable it by turning off the Scheduled Charging option in Battery Care. Once that's done, the LED will stay off. You can still keep good charging behaviour by setting charging maximum to 90% and using the Steady Charging option, neither of these affects the status of the LED.
I'm about sure this update bricked my Zenfone 8, so best watch out. It got as far as the reboot and then... dead. Haven't been able to restart it since. I'm in the process of RMA'ing it to the place I got it from. Of course YMMV. (Of course I cannot check which version the update was, just that it was offered this morning…