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The new Export As gives bad results for PNG (8-bit) when reducing the color palette. This is most visible in gradients. Tested on Photoshop v23.0.0 on Windows 10.
Workaround: Enable Legacy Export As in Preferences.
Steps to reproduce problem:
Full resolution/lossless screenshots attached to this post.
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I notice you're you're not embedding the color profile in the version where you're getting banding. If you check that, does it look right?
Sorry, forgot to toggle that when taking the screenshot, but no. Embedding the color profile makes no difference; it's just metadata. The color values in the image file does not change, and it doesn't affect the algorithm used to reduce the color palette.
If it's not clear, I did test with and without the various boxes checked/unchecked, but it makes no difference. New Export As always gets that bad light/dark lines (not what I'd consider normal banding), while legacy export as and save for web always gets a smooth result.Ps: In Save for Web we have control over what algorithm/settings to use (feature request for Export As!), and I tested a bunch of settings but was unable to get an error of the type seen in the new Export As.
Thanks. I'll have the engineering team take a look.