When the option “Precompile during publishing” is checked, and (behind configure) the option “Allow precompiled site to be updatable”, the code is not being precompiled.
Thank you for the report, this issue will be reviewed under bugs://80683 from the related thread, as a general web service publishing issue.
Could you please let us know if that issue is still reproduced for you?
Looks like this one is solved too in 2403.
Cool, thanx for confirming!