Problem w/version 1v86

I've got the following code from the tutorial running

But the function is being called when my finger is very close, but not yet touching, the shield around the pico button

It gets called when I touch any of the pads on the back of the pico

I can touch pretty much anywhere else w/no effect

I thought this was very strange, so I tried this on another pico that had 1v80 and it did not do this - then I flashed that pico to 1v86 and it shows the problem

setWatch(function(e) {
    digitalWrite(LED1, e.state);
    console.log('btn',e.state);
  }, BTN, { repeat: true });