Yes, I'm also finding that this function is no longer working, even
though in setting up the payload options it says the sleep/wake button
is enabled for turning off the device.
Yes, we're seeing it as well. Running 9.99. I then tried an iPad with
the exact same configuration except did not update to iOS11 and had no
issues at all.
We had this issue recently on some iPads affecting only Apple
productivity apps, iMovie, Pages, and Keynote. Ended up having to wipe
the devices and re-image.