This is an even match-up. Nothing has really changed much.
-Out jab/ftilt out ranges sheik's close-up based combat and that is probably the range to stay at to avoid being caught in her ftilt.
-I've seen Judo complain about the ftilt lock on Falco compared to wolf/fox, so I suppose that is something to be grateful for
-Short hopping at really any range is hurtful because sheik's needles fully charged can hit him out of it. Plus, Sheik's dacus and dash attack gives her "get underneath falco quickly" options. So attempting SHDL with Sheik at neutral stance will put Falco at risk. Attempting SHL gives you the time to Dair/airdodge before shiek gets to you or be able to reflect needles if you see her start them up before you pull the laser out.
-Sheik has an air release -> Usmash on falco. However, I think she cannot force the air release. Falco has to press up on the c-stick or control stick or press the jump button to escape and do an air release.
-Jab her out of any AAA she does.
-Don't be surprised by needles to stop falco's phantasm recovery, you and phantasm right away again.
For the most part, try to keep sheik at ftilt/jab range while camping SHL. Punish approaches. Space aerials so you do not end up jumping into a nair/fair when juggling. Sheik will likely want the ledge and try to stall out time to get herself on the ledge or using her tether to get there quickly. Edgehoggging is a decent way to cover a lot of her recovery options safely.