So, here’s my Road to Canossa: This one is on me - I am sorry!
Turns out that the recent updates for the Palladian and Spellchecker nodes had a bug which caused this issue on KNIME 5.3.
There’s updates for Palladian (v3.1.2) and Spellchecker (v1.3.3) available now which address this. Please install the updates, restart KNIME, select the proper workspace location once again and all should be back to normal.
FAQ:
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Did the bug lead to any data loss? - No.
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Which KNIME versions were affected? - KNIME 5.3 and newer.
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When did it happen? - If a non-standard workspace location was selected.
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What did happen? - The mentioned nodes contain a mechanism which automatically keeps your update site URLs at the proper version and which is intended to make future updates less of a hassle. It is to address the common issue, that people use e.g. a Palladian Nodes update site in their KNIME 5.3 which was originally intended for KNIME 5.2 and thus provides no compatible updates. Turns out that this functionality broke in KNIME 5.3 due to an incompatible change - this is addressed now and the feature should work as expected.
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Anything left unanswered? - Let me know.
A big THANK YOU goes to @danielesser who spent his early morning debugging and fixing this and helping to roll out this fix rapidly - I owe you! Also thank you to @mlauber71 for the pointer in the right direction.
Best regards,
Philipp