This issue should be fixed as of the 1.1.0 patch, but you may need to load an earlier save file to see the benefits.
This is an issue caused by equipment which directly increases Cypher Limit. It occurs specifically when you have a character in your party who has equipment which is providing a Cypher Limit bonus, and that equipment is also preventing a cypher explosion from occurring on a party member (for instance, Rhin's Jacket, God of Small Devices, Witcrafted Shapestone Harness). This issue should not occur with items which increase Cypher Use skill (e.g. Psychic Guard), only those boosting Cypher Limit directly are affected.
As an additional work-around, you could try loading an earlier save file and making sure that your characters' cyphers are distributed more evenly across them, so that the bonus Cypher Limit slots aren't preventing a cypher explosion on any of your characters. It's most likely the affected party member is Rhin, especially if you are trying to maximize her cypher bonuses. Doing this should hopefully prevent this issue from occurring in the meantime.