Vee I will be upset if I find that Kagi has effectively wiped some of my data when the change happens. I’m definitely not switching over early, and am hopeful that this will be walked back before the switchover date.
The onboarding for the new implementation of Assistant does warn that mutliple tags will be reduced to a single folder (using some unknown heuristic). I enabled the feature knowingly, having built up enough trust in Kagi to be willing to take the gamble.
But yes, information is lost, and there's no going back. If you have a meticulous organizational system using tags, I'd recommend staying where you are for as long as you can, until the implementation improves, or tags are brought back as an option.