I have had my M8 set for ON+UV/IR (I have short lenses coded and all lenses with IR filters) since the beginning, never had a problem, other than the following.
I don't know about 3rd-party M-mount lenses because I don't own any, but be wary of late 70's to early 90's pre-ASPH Leica lenses. Many if not most of them have a rear flange mounting screw that lands smack dab over the code reader and acts like a black bit-code, reacting with whatever frameline is active to fool the M8 into thinking the lens is coded. My pre-ASPH 21 Elmarit, v.IV 35 Summicron, 50 "tabbed" Cron, and "thin" 90 T-E and 90 pre-ASPH Crons all have such a screw. A dab of white enamel over the screw head cloaked it from the reader. The only ones I didn't need to paint white were the 90 T-E, because it just so happens the combo of the screw placement and the framelines coincides for the code for that lens; and the v.IV 35 Cron, because the screw is sort of in the middle between the 2 black bits needed for coding, so I milled around both sides of the screw area and painted the whole area black.