diff --git a/NEWS b/NEWS
index 0ec3d6910..02c5cbd7c 100644
--- a/NEWS
+++ b/NEWS
@@ -3,6 +3,15 @@ For full details, see the git log at: https://github.com/ksh93/ksh
 
 Any uppercase BUG_* names are modernish shell bug IDs.
 
+2021-12-21:
+
+- Fixed a bug that caused subshells (such as code blocks in parentheses) to
+  partially behave like the interactive main shell after running anything
+  that invokes the parser. For example:
+	$ (eval :; sleep 1 & echo done)
+	[1]	30909      <--- incorrect job control output from subshell
+	done
+
 2021-12-17:
 
 - Release 1.0.0-beta.2.
diff --git a/src/cmd/ksh93/include/version.h b/src/cmd/ksh93/include/version.h
index 815ed0ac5..83838dcdd 100644
--- a/src/cmd/ksh93/include/version.h
+++ b/src/cmd/ksh93/include/version.h
@@ -21,7 +21,7 @@
 
 #define SH_RELEASE_FORK	"93u+m"		/* only change if you develop a new ksh93 fork */
 #define SH_RELEASE_SVER	"1.0.0-beta.2"	/* semantic version number: https://semver.org */
-#define SH_RELEASE_DATE	"2021-12-17"	/* must be in this format for $((.sh.version)) */
+#define SH_RELEASE_DATE	"2021-12-21"	/* must be in this format for $((.sh.version)) */
 #define SH_RELEASE_CPYR	"(c) 2020-2021 Contributors to ksh " SH_RELEASE_FORK
 
 /* Scripts sometimes field-split ${.sh.version}, so don't change amount of whitespace. */
diff --git a/src/cmd/ksh93/sh/parse.c b/src/cmd/ksh93/sh/parse.c
index fe9a3f4c1..b37cf68d2 100644
--- a/src/cmd/ksh93/sh/parse.c
+++ b/src/cmd/ksh93/sh/parse.c
@@ -385,8 +385,6 @@ void	*sh_parse(Shell_t *shp, Sfio_t *iop, int flag)
 	shp->nextprompt = 1;
 	loop_level = 0;
 	label_list = label_last = 0;
-	if(sh_isoption(SH_INTERACTIVE))
-		sh_onstate(SH_INTERACTIVE);
 	if(sh_isoption(SH_VERBOSE))
 		sh_onstate(SH_VERBOSE);
 	sh_lexopen(lexp,shp,0);