Official Discussion: September 9th, 2020 Development Update

No it isn’t, instead:

Increase distance threshold to see other aircraft navigation and strobe lights at night - Bugs & Issues / Virtual Reality (VR) - Microsoft Flight Simulator Forums

(a moderator has also removed the [BUG] prefix in the title a few days ago)

The gist of it:

In other words, like I said earlier, since the developers will be working in correcting a bug affecting the lights, while at it, it could be worth to also increase their display distance. Because otherwise, even if the lights will show again soon, past 5nm they serve no purpose at all.