diff --git a/CHANGELOG.md b/CHANGELOG.md
index ec7902a..5a272a3 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,20 @@
+## [1.2.1] - 2025-12-12
+
+* **Changed**
+
+* Split container tests into *virtualenv* and *Nix flake* environments to clearly separate Python and Nix responsibilities.
+
+**Fixed**
+
+* Fixed Nix installer permission issues when running under a different user in containers.
+* Improved reliability of post-install Nix initialization across all distro packages.
+
+**CI**
+
+* Replaced generic container tests with explicit environment checks.
+* Validate Nix availability via *nix flake* tests instead of Docker build-time side effects.
+
+
 ## [1.2.0] - 2025-12-12
 
 * **Release workflow overhaul**
diff --git a/flake.nix b/flake.nix
index 18f5382..dc99ee9 100644
--- a/flake.nix
+++ b/flake.nix
@@ -36,7 +36,7 @@
         rec {
           pkgmgr = pyPkgs.buildPythonApplication {
             pname   = "package-manager";
-            version = "1.2.0";
+            version = "1.2.1";
 
             # Use the git repo as source
             src = ./.;
diff --git a/pyproject.toml b/pyproject.toml
index 360ae0e..787261b 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -7,7 +7,7 @@ build-backend = "setuptools.build_meta"
 
 [project]
 name = "package-manager"
-version = "1.2.0"
+version = "1.2.1"
 description = "Kevin's package-manager tool (pkgmgr)"
 readme = "README.md"
 requires-python = ">=3.11"