It looks like this ticket was closed with a suggested workaround, but the bug is still present.
Disabling prepared queries for retool db only disables them for prod. This causes incompatibility between prod and all other environments for all SQL usage of the retool db, making environments effectively useless for apps using retool db without prepared statements.
Hey @hvhiggins! Thanks for reaching out. We're currently evaluating how to best document workarounds versus actual solutions and/or bugfixes, so this kind of feedback is definitely helpful. 
In other news, though, we are currently addressing the underlying issue and should hopefully be able to share an update on the timing of the fix in the coming weeks!
UPDATE: As of version 3.163, disabling prepared statements in the RetoolDB settings now correctly applies for all environments.