The server is OpenSSH (preinstalled by a vds provider, but I’m certain nothing unusual about it). It was working before the update. No changes were made on the server side.
Looks like the case of 32 -256 change. It was the key length and before the update it was in bytes.
All Ed25519 are 256 bit. Likely 32 was the key length in bytes as @ts678 found out above