IdP users no longer created in 8.0.1

I recently updated from Keycloak 6.something to 8.0.1 without any issues.

We use Google as an identity provider and since the updatre to 8.0.1, user accounts are no longer automatically created in keycloak. The whole authentication procedure works fine; redirect to google, people log in, etc., but then we get presented with a keycloak error saying “invalid username or password”.

I checked the user account list and I can see that the people who try to log in are no longer automatically created. People who logged in before the update to 8.0.1 can log in using Google just fine, as they already have an account. New people cannot.

The “Account Linking Only” switch if set to OFF and that is the only setting I can see having any influence on this.

Everything worked fine in 6, no settings changed. I hope I’m missing something obvious here… please advise.