Strange issue uploading code using UPDI megaTinyCore

I am using the SpenceKonde / megaTinyCore to program the ATtiny404 using CH340 serial UPDI.

When I click upload, It says

Compilation complete.
Upload error: A programmer is required to upload

But when I select Upload using programmer, it uploads.

Compilation complete.
UPDI programming for Arduino using a serial adapter
Based on pymcuprog, with significant modifications
By Quentin Bolsee and Spence Konde
Version 1.2.0 - June 2021
Using serial port COM4 at 460800 baud.
Target: attiny404
Set fuses: ['2:0x02', '6:0x04', '8:0x00']
Action: write

Hi @spiralbrain. Thanks for giving the Arduino IDE 2.0.0 release candidate a try!

This is a known defect, which is being tracked by the Arduino IDE developers here:

See this comment for an explanation:

If you have a GitHub account, you can subscribe to that issue to get notifications of any new developments related to this subject.