Does anyone know what is going on with the Daedalus wallet issues since the 5.4.0 update that stops trezor paired daedalus wallets from being able to send transactions
You can simply use any other litewallet that supports Trezor. Imo theres no reason to use Daedalus for 99% of the users.
https://cardano-community.github.io/support-faq/Wallets/list/
I do recommand to use Typhon.