Regarding the reinstallation, I actually just did that not less than half an hour ago. It updated just fine. Logged in just fine.
When I closed the game window and restarted the launcher, the new interface wasn't there and I was presented with the same old login screen. Unsurprisingly, I got the "Connection to servers has failed" prompt.
Maybe you should keep an eye on the official forum for fixes and announcements in relation to the new patches.
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