You’re right, the local handler for Z-Wave switches isn’t populating the physical/digital field. We actually intended to deprecate and remove that functionality before this release, but that fell through the cracks. I apologize for the communication failure.
The reason we’re not continuing to support the physical/digital field is that it only works on a subset of switch devices, and even then it’s basically just a hack for most of those. For example, on most switches it doesn’t work through repeaters. We’ve also had issues with false positives.
For now, you’ll have to use a custom DTH to continue to get that functionality. I’m hopeful we can replace it with a capability like Button that more precisely represents the device’s behavior, but I don’t know what kind of priority that will have.