Conf 8.0.6 does not honor ssh algorithm configuration

We are using confd 8.0.6.
It seems it does not honor the configures ssh algorithms.
This is our ssh algorithm configuration in confd.conf:

/confdConfig/ssh/algorithms/kex = diffie-hellman-group14-sha256
/confdConfig/ssh/algorithms/mac = hmac-sha2-512
/confdConfig/ssh/algorithms/encryption = aes256-ctr

However, when I run “ssh -oKexAlgorithms=diffie-hellman-group14-sha1 admin@localhost”, it accepts the connection.
In ssh debug I see the confd publish all possible cyphers and not what wS configured:

debug2: KEX algorithms: ecdh-sha2-nistp384,ecdh-sha2-nistp521,ecdh-sha2-nistp256,diffie-hellman-group-exchange-sha256,diffie-hellman-group16-sha512,diffie-hellman-group18-
debug2: host key algorithms: ssh-ed25519,ssh-rsa

Is this a known issue or miss configuration?
This change was done while confd was running, and we called confd --reset.
However I found out that if we restart confd it works as expected.
Is this expected? In previous releases, it was supported without restarting confd

You are right, this is not correct. There were fixes related to this problem in 8.0.7 and 8.0.8, so 8.0.8 is the first one that does not suffer from that.