That is a completely unacceptable "solution".
The developer has a responsibility to make a backward-compatible save system or include something in the update to reformat the save files for the new version if that's required.
Requiring users to start again after an update is nonsense.
I didn't touch the game for about 8 months but after patch 1.31 I was wondering how it was on PS5 and it was... a bit better but still bad.
My first play session ended in a system crash but before that I was treated of pop-ins during walking (and sure riding as well), items I couldn't pick up and multiple audio drops. A day later I tried again, I drove off with a guy from the police who was sacked. After we went for a Peter Pan thing (not sure what it's all about as audio was a mess or missing during the tv clip I watched in the car. We drove trough another car that disappeared (except for the driver) but the guy already walked trough me multiple times during my previous session.
So this one goes into the backlog until the next big patch as it's just not fun.