Same problem here. We updated acout 40 blogs today and reproduced the error of lost settings on all 40 blogs.
You mean this comes from version 5.0:
– Notification is only send to users with update permission
Is there any chance to set a notification to another mail adress than to send the notification to all admin users? We have some blogs with about 15 admin users but they should not get informed everytime there is an update.