Given how long this has been brewing, the changelog has grown quite large. Let’s take a look at the highlights, shall we?
Woop woop 
Good job!
Awesome.
Time to get this on my test rig 
I can't find documentation (or the PR) of the new auth_dialog Application Key workflow. Got link?
@fieldOfView Damn... I actually forgot to write docs about that. Will change ASAP, thanks for the heads-up.
In a nutshell though, Start authorization process now not only returns an app_token but also a auth_dialog which is a URL that can be opened in a browser to ask the user to login and confirm/deny the request.
FYI, there are currently two known issues. One is caused by data provided by the WebcamTab plugin and causes the UI to fail with an Internal Server Error if the plugin is enabled and the other is a fatal startup error caused by any kind of integers as keys in the configuration (something which apparently NONE of my test setups ever had and thus I didn't notice). Both have fixes ready and I'll roll out 1.8.0rc2 either later today or tomorrow.
For the current state of known issues and their fixes please always refer to the feedback ticket:
Quick question, When 1.8 comes out, do we have rebuild the klipper.bin firmware file?
No. Klipper is independent of OctoPrint.
Duh, I forgot about that.