Okay... a nice, helpful and swift response to the bug ticket:
https://bt.x-cart.com/view.php?id=48481 which we're going to test shortly
Quote:
If you want using list of value for the country you need used setting "autocomplete_states_for_countries" in "etc/congfig.php"
Description: All the following countries always uses custom state with autocomplete(if available) possible values - country codes ('GB,US,DE' as example), 'All' or empty ''
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Our response;
Quote:
...If default processes / settings are going to be changed, then surely this MUST be advised as part of the upgrade details? Note that the USA still IS autocomplete_states_for_countries yet.... the UK is NOT after the changes. Who randomly decided that was correct? An American?.... 
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Note that this is default change between XC 5.3.2.* and XC 5.3.3.* thus our feedback