"Home page url" not working. Always redirects to users/sign_in

After update from 7.11.4 to 7.12.0 redirecting no longer works and always redirects to users/sign_in no matter what is set as Home page url under admin/application_settings

Using Gitlab-CE Debian Jessie repository.

• GitLab 7.12.0
• GitLab Shell 2.6.3
• GitLab API v3
• Ruby 2.1.6p336
• Rails 4.1.11

Probably reproduced on gitlab.com because root also redirects to login.