@fasteddie7 - You aren't losing your mind, this happened to me twice this past weekend. It is behaving like it had prior to the initial release of v8.0.
I was travelling on a non-divided highway, speed limit was 40, I had the autopilot engaged and set to 45 (TACC showed "MAX 45"). I entered into a 35 zone, and the autopilot restricted me to 40 (note: the TACC now showed "MAX 40"). I continued on autopilot, and upon entering a 45 zone, my speed increased to 45 (my previous, initial, manual setting) and the TACC now showed "MAX 45" again. Note that I could technically be doing 50, but I didn't previously have it set to 50, I had it set to 45.
This behavior is exactly how autopilot functioned prior to the initial release of v8.0. The only difference is that in v7.1, it would still let you manually manipulate the speed setting to a higher speed (and display it), even when autopilot was speed restricting based on the speed limit. Theoretically, in v7.1, you could set the autopilot to 90MPH, and it would adjust your speed to 5 over along your whole route as the speed limits changed, with no intervention from you.
Side note: with this latest behavior, if you try to change the speed setting with autopilot engaged on a non-divided highway, it will not do as described above. It takes that movement of the cruise speed setting as your new setting, even if you were trying to set it to a higher setting, and visually nothing seemed to change.
Okay, now everyone go try this and report back!