Works fine in 17.8.1 and below then they arbitrarily made a change to behavior of the hardware in version 17.9.1. This is a terrible business practice and obviously an attempt to grab more profit even though really Cisco trying to make money off SFPs and linecards??? Pretty sure Cisco's last quarter revenue was pretty good. What their marketing/engineering team probably failed to realize is that this creates real issues for customers with 1 gig circuits, and older fiber that doesn't support the distance with available 10 gig optics.
Our team to mitigate this issue is having to potentially procure SFP-10G-LRM and swap SUP1 from our HQ building where our fiber supports the distances. If you run into this issue as well, please comment and help the complaint to Cisco product management and engineering.