Looks like the new graphical update brought a new bug in with it.
The latest patch for The King of Fighters XIV–version 1.10–provided a significant and hotly anticipated graphical update to the game’s visuals. However, it seems to have inadvertently also introduced a glitch that can interfere with online play. According to SNK:
There is an issue where the game will consider the player to have disconnected from an online battle, if they change the display settings for “Icon,” “Title,” or “Rank Match Fight Record” on “MY PROFILE” screen. We are currently looking into it and hope to have a fix as soon as possible.
Because this will affect win rates and disconnect penalties, please refrain from making any changes on the “MY PROFILE” screen.
We are also investigating into any other issues with this patch, and will notify everyone once our investigation is complete.
We apologize for any inconvenience and ask for your patience as we prepare another patch to solve these issues.
SNK has cultivated a good track record addressing glitches for The King of Fighters XIV since the game’s release–including the recently found Ramon infinite–so a patch to fix this issue is likely coming very soon.