The fantastic developer Zhentar has responded with amazing speed to make Mod Manager v.50 available that is fully compatible with Patch 7. It even makes the folder for you in the Update folder so you don’t have to worry about making and finding the folding yourself.
However, there is one caveat: if you are using any mods which have NOT been updated to the .daimod format, it will NOT recognize those mods, and thus those mods will not be in the game.
There is a workaround to get those mods working, but it is fairly convoluted (it’s the struckthrough portion on the link, and you MUST use Mod Manager v.49alpha).
NOTE: The Modding Tool to MAKE mods might not be working with Patch 7. Testing is continuing.