HTML formatting broken after upgrade to WP 4.7.1

After upgrading to 4.7.1 my theme broke. All html formatting in the entry-content was gone. The linebreaks had gone and the text was now displayed as textarea instead of P. This meant the text size was now 1rem, and this is not readable for anyone.

I managed to fix this, by adding the following line to the setup section in functions.php:
remove_filter( ‘the_excerpt’, ‘wpautop’ );

A better solution would be welcome. ??

For completeness, the diff:
— wp-content/themes/nomad/functions.php 2017-01-18 11:00:08.000000000 +0100
+++ ../themes/nomad/nomad.2.0.7/functions.php 2017-01-02 14:34:30.000000000 +0100
@@ -85,7 +85,6 @@
‘default-color’ => ‘ffffff’,
‘default-image’ => ”,
) ) );
– remove_filter( ‘the_excerpt’, ‘wpautop’ );
}
endif;
add_action( ‘after_setup_theme’, ‘nomad_setup’ );