After upgrade to iOS 26 location based home automation is not working?

After upgrade to iOS 26 location based automations in the Home app is not working. When I leave my home lights are not turned off. The automation is not firing. It worked before the upgrade.

I have checked my home location and it is correct. Location is turned on in the iOS settings.

I have found an odd thing in the location settings in iOS settings for Home. Only sometimes Always is available in location permissions. If I set it to Always then I will be asked to allow location for home widgets and then the location is flipped to in use app and widgets.

I have also tried to clear location history, but the issue is the same. I have checked all settings. There must be a bug in IOS 26.