UPDATE: Oct 3 @4:00pm EDT - This issue is now resolved by updating to the newest version of the Epic Games Launcher and/or the latest version of the Datasmith plugin.
Original message below
We are aware that updating to the 7.16.0 version of the Epic Games Launcher prevents the ability to import Datasmith files.
If you have not updated your Launcher, please do not update at this time. (Restarting the Launcher may trigger an automatic update)
If you have updated your Launcher, please stand by. We are working towards a solution. It is not possible to roll back to to the previous version.