The Hilbert-Smith conjecture states that

If $G$ is a locally compact group which acts effectively on a connected manifold as a topological transformation group then is $G$ a Lie group.

It was established for actions by diffeomorphisms by Bochner and Montgomery. Later on it was also established for (compact?) actions by Lipschitz homeomorphisms (Repovs and Shchepin) and Hölder actions with very large exponent (>dim M/ dim M+2).

I am interested if the conjecture holds for Hölder actions (with small exponents). Is it plausible these arguments can be pushed to get the conjecture for Hölder actions? Or there is a fundamental obstruction?

Also, there is a 2001 preprint "A Proof of the Hilbert-Smith Conjecture" on arxiv that claims the full conjecture. I assume it's wrong as it wasn't published, but a comment from an expert would be highly appreciated.