In the recent patch notes as follows " * Adjusted rewards drop location for Naruna Hot Springs."
I assumed this was in reference to the boss dropping his loot on death in his phased instance area and then being unable to get the loot before being phased back into the original area after a certain point. The aforementioned is a bug regardless that I assume is known. If the patch notes weren’t in reference to this then I don’t know what they were about. Assuming the quote is in reference to this bug where you don’t get the loot if you kill him too early then the issue isn’t fixed as far as I can tell nothing has changed. I avoided this on my other characters as I knew about it however on my fresh Glavier and after reading the notes I assumed poorly that the bug was fixed.
Basically just killed Seto the Naruna Hot Springs dungeon boss normal mode in his alternate dimension area. Saw him drop loot for 1 second then got teleported back to the original location with Nagi waiting and none of the loot picked up in my chatbox or inventory.