In general I would say yes. I think no damage was actually done, what people complain about is the direction they are going. You would need to kyc in order to upload your seed phrase shards etc anyways.
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But to be on the very safe side, always better to make a new one.
Your funds are safu. It never leaves the device. Except with a simple update they can now extract your whole seed.
sEcUrE ElEMenT
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I'm not defending ledger and their policy. I'm just saying as he didn't update I have no reason to assume seed phrases are compromised at this point. I highly recommend not using ledger live software anyways tho.
Definitely not doing any updates anymore