This bug affects latest unstable only and was introduced when tracing was merged.
Actual Behaviour
When running a VC with the --validators-dir flag, the VC panics with the following error:
Failed to initialize libp2p rolling file appender
UPDATE: This wasn't actually caused by the --validators-dir flag, it turns out it was a file permission issue. This wasn't happening on stable because we don't create libp2p and discv5 log files on the VC. These files are not relevant to the VC and should not be created.