I just used the update via the 8.x.x channel to manually update. I have set the device to manual update but to inform me of available updates. I, too, see the three options.
as per the picture
I then reverted to 8.0.1 and get this
And my audio is back again, had to select the correct output first.
So it looks like there is a problem which should be reported over at the Kodi forum. I am heading over there to to that.
@chewitt it looks like there is a problem.... I recall we may have had a simliar problem in beta testing way back when you picked up the build for Slice, that was a missing or incorrect library file perhaps?
Update: reported the problem here