LSWS 4.2: cgi-script override is not allowed in .htaccess

[tina]

We just upgraded to LiteSpeed Web Server from 4.1.13 to 4.2, on a cPanel server, and suddenly we are getting this error for sites that use 'AddHandler cgi-script' in .htaccess files to add their own extensions:

"cgi-script override is not allowed in .htaccess"

The error did not appear in 4.1.13, and we did not change any settings, although we did select 'Re-install' during the upgrade as recommended, in order to run the new PHP SuExec daemon.

How do we fix this error?