I spoke with NS support about this issue and they said "This is an ongoing issue in version 2026.1. We have already filed a defect, and it is currently classified as U3 urgency." and "A U3 urgency level is typically resolved within 3-7 days"

I got the defect email from the ticket as well. Glad they're looking at it

Wow I'm honestly a little surprised they're taking it seriously. Maybe it was "oops" that wasn't supposed to go into this release or something.

I got the email that the "Set as Inactive" button enhancement had been completed, and on my RP, the button is completely gone from entity records. Doesn't show up in "Edit" either, so I'm guessing they just killed it.

Seeing the same. I had added to an existing script to hide it but after removing that the button is no longer present so looks like it was removed for now.