I just completed the upgrade and the problem remains but has changed. I did the upgrade by fully removing the SM install and rebooting. re-installed SM then removed the synced device from the web mail / removed the account from the device and added it back.
the device now displays the all day entries as TWO DAY EVENTS starting a day prior.
This seems like a bug to me and if you can confirm I will submit a tick unless SM responds to this thread???