Actions used on svelte:element not updating child elements correctly

[mdtomo]

Describe the bug

After upgrading from Svelte 4 to 5, the svelte:element tag no longer updates child elements correctly when an action is used on the element.

Please see the following issue for more context.

Reproduction

Here's a link to the playground that reproduces the issue. If the svelte:element wrapper is replaced with a regular element (div) then the playground works correctly.

Logs

System Info

Svelte playground

Severity

annoyance