I reinstalled Blockland completely from scratch with no add-ons or any files from the old installation. The jeep (or any other vehicle) still doesn't catch on fire when destroyed with fresh Blockland installation. It only explodes and turns black, no flames visible. My friends have also claimed noticing the missing damage emitter and it was all fine the day before the update, but not the day after. I know this because my previous vehicle had it's own damage emitter, which all of a sudden no longer worked (including the damage emitters on all other vehicles too) when I launched Blockland for the first time after the update.
If it works fine for you all, I honestly don't know what's the issue. What ever it is, I got it with the update and - as far as I know - I'm unable to fix it myself. Guess I'll just have to deal with it if it really doesn't count as a legit bug.