Just updated to 8.1 from 8, and for some reason the People app, regardless of what letter you press, just shows all contacts every time.
So you press 'A', for example, and it just takes you to all contacts. (Furthermore, none of the letters are highlighted, which would be the expected convention to show which letters had contacts under them and which didn't. Not sure if this is related...)
Is this some weird bug, or just me?