Never heard of, but if it was working before the update, you could
1) try the soft way: take off the password remembering, close the app to make sure the settings are saved for good, re-launch it, check your mail if you like to, set the password remembering on again and see if it helps. Probably won't.
2) save your mails (export or something) and reinstall Evolution: first purge it (remove all config files too) and then install it again, this should clear problems related to having config files around that should be updated. Then re-make your settings if needed and import your mail back, and see if that helps.
Not sure why it is doing that but it's possible that during the update not all the configuration files of Evolution got updated, or that something went wrong during it, and if something (the password system, for example) was changed during the update, it might not work with old settings or something. This is pure guessing, but I've encountered this kind of errors with some pieces of software, if I didn't update/overwrite old configs during update.
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