Controlling settings, permissions, and membership within Teams and channels
Yes, it is fixed on my tenant too and a couple of client's tenants I've been able to test.
Now when you are in the field where you can choose your first channel's name, you can either enter General (no errors) or you clic on the tree dots to the right of the field and pick the option that will set the name to General and also will make this first channel appear the first in the list of channels.
It has taken ages and been a real pain but the fix is pretty good.