Problem with postgres 9.6 ODBC drivers

Hi Postgres ODBC team,

Our application is failing with the latest windows odbc (postgres) drivers, because it's not updating sequence table at al.
So we will always get the same id when we try to create any new object, ending up in unique constraint violation error.
Debugged postgres odbc driver code (https://www.postgresql.org/ftp/odbc/versions/src/) and found the below:

File: results.c
Method: static void KeySetSet(const TupleField *tuple, int num_fields, int num_key_fields, KeySet *keyset)
Problematic change: keyset->status = 0;

We will execute all queries with status 1024, now for some reason status has been re-initialized to 0. Because of this, update call itself is not getting invoked (code below)

spos_callback function:
#define CURS_IN_ROWSET (1L << 10)
if (0 == (res->keyset[kres_ridx].status & CURS_IN_ROWSET))
continue;

status: 34
CURS_IN_ROWSET: 1024
34 & 1024 => 0

If the status was not reset, then keyset[kres-ridex].status will be 1024+ 34 => 1058 (behavior for 9.4 and 9.5 drivers), so will do the update properly.
We need your help to find out why this has been changed in the latest drivers? Is there any specific reason behind this? Is this a bug/any workaround to overcome it?

Thanks,
Jegan