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1.2.1 is a medium sized feature release. It has two major new features alongside two quality of life improvements. Also, bug fixes. Here's what's new:
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Switching your Compatibility Tool between ones of the same type (Intel/Rosetta -> Intel/Rosetta, FEX to FEX) no longer requires a prefix rebuild.
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Prefixes can be rebuilt from inside of Steam! You can rebuild a prefix from the Compatibility screen after switching tools. There is an option to rebuild the prefix when you go to launch the game, in the event that a user forgot to rebuild it from the Compatibility screen. That comes from a PR from @LaganYT that I reworked, thanks to them for the PR.
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You can now set Global Default Compatibility Settings, settings you want applied to every (Windows) game. Go to Steam Preferences -> Compatibility. Settings you apply there can still be overridden on a per-game basis under the game's Properties -> Compatibility Page.
On the quality of life side:
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FEX CrossOver is now run with Reduced X87 Precision by default, matching the behavior of the recent CrossOver Preview releases. This improves game performance in 32 bit titles by a great deal. You can disable this under game/global Compatibility settings.
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Intel/Rosetta CrossOver now runs with AVX2 support enabled by default, matching the behavior of CrossOver 26.3.
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Italian translation improvements (Thank you, @Dino0005). I'll try to stop giving them more stuff to translate.
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Fixes issues with non-game Windows applications and High Resolution Mode that caused them to render at the incorrect size, whoops.
Up next: Paying down some technical debt, fixing bugs, fixing issues with NTFS/exFAT drives, controller improvements, macOS Game Mode support. Game Mode is done but did not make this release. After that, the rest of the roadmap should be ready to ship.