NIP 04 is used all over the place still, including DMs, can you describe what you're seeing in more detail?

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Coracle handles backwards compatibility to nip-04 fine, no issues with Coracle.

I mentioned to Terry that some apps may still use nip-04, and not nip-44. Therefore if new apps build only nip-44, without taking into account backwards compatibility this would be a nostr interoperability or #nostrability pain point.

Ah yes, it certainly would