Any idea why it doesn’t do that anymore?
When you say updating camera background, do you mean Updating Overlay?
Yes, Alt-C, the button with a camera or “Update Overlay” in Cameras tab.
Same behaviour. Used to switch from “User Origin” or “Current Position” to “Absolute Coords” and now it refreshes the overlay but no switch.
I just recently added a camera, so I have no history. But I joined the Camera Club after reading about the major changes making the camera setup process easier. Removing that automatic link likely happened with the new version.
That said, and knowing the camera use requires Absolute coordinates, I think a request to put it back in makes sense. Maybe @JohnJohn can help find out why it changed.
THAT said, except for using the Rotary, I never use anything except Absolute Coords. I like having my designs in the Lightburn grid match the laser module position on my honeycomb. Where an element of my design is located is where the laser will go. It is like having the grid hovering above the laser workspace and looking down from the top. Least amount of hassle and very rare out of bounds error messages.
I swich to User Origin only when I have to evaluate lenghts and it used to switch back when updating the overlay. Not a big issue though. Just wondering if it’s intentional and permanent 
The Lightburn developers will have to answer that. 
As I use the camera to see the jobs running it´s ok for me. Maybe a toggle somewhere…
It must be a strange case in your setup, here in my stup (in coordinate preferences) nothing changes when updating the camera overlay. Just tested with 2 computers.
Current Position, Update Overlay, still “Current Position”.