I was having the same server bootloop issue yesterday and this is more or less what I ended up doing as well, just in case there were some lingering files that were conflicting with the update.
Worked like a charm and haven't had any issues since.
Thank you ich777 for the update
Is BepInEx safe to run with the VRising docker now that it's been updated for v1.0?
I tried just a manual install and enabling the setting, but I keep getting stuck in server start loops and thought I'd ask.