A number of users reported experiencing the loss of crucial login data in third-party apps after installing Chrome 79 on their devices.
The tech giant confirmed any app that accesses Chrome via Android's built-in WebView system could be affected and said it could take a week to resolve.
The update has already been rolled out to 50% of Android users worldwide.
A number of apps rely heavily on WebView, while some - including Twitter Lite, a scaled-down version of the social media platform - are run entirely using the system.
The latest update hasn't deleted the data, but it has changed its location and rendered it impossible to find.
An outpouring of complaints from users began appearing on Google's forum after the update went live on 10 December.
"This is a catastrophe. Our users' data are being deleted as they receive the update," said one frustrated developer.
Others complained that their apps had been inundated with overwhelmingly negative reviews on Google's Play Store after the bug rendered them unusable.