Do you have the same issue if you follow the OP’s steps to reproduce it?
I think some of the issues the OP reported have been fixed but heading hold is not working.
Provide extra information to complete the original description of the issue:
The following observations were made with an empty community folder: After engaging the autopilot the RUD knob does have a push to activate the “heading hold” function that it did have on it’s original release (based on several videos on how to use the Sperry Autopilot).
The heading hold can be engaged using a controller/keyboard mapping to TOGGLE AUTOPILOT HEADING HOLD or AUTOPILOT HEADING HOLD ON. This does indeed engage a heading hold but I can find no way of controlling the heading the plane flies on. It does not respond the RUD button.
Having engaged our heading hold it is not possible to disengage it with controller/keyboard mappings to TOGGLE AUTOPILOT HEADING HOLD and AUTOPILOT HEADING HOLD OFF.
Minor note when using the controller mappings you can hear the click of the switch the game imagines you are setting. It even logs the state so if you try to turn it on twice you only get a click for the first request.
If relevant, provide additional screenshots/video: