I have just now experienced the same issue on a popular MP server. After the update i first fired up a my selfmade range mission on single player, no issues with George.
The i hopped online and George was not able to spot any target. Day, and clear weather. I jumped onto to front seat and found and engaged the targets with no issue.
Then an igla whacked me because i sat in front and coundt take command fast enouth. Welp. Looking forward to end of februray update then.