Gameplay: 

• New boss: Nimruza, Queen of the Burrowed Sands. Found in The Desert of Beginnings biome.
• New cicada enemies added in Azeos Wilderness and in Nimruza's dungeon.
• New enemy variation of the Bomb Scarab. Found in Nimruza’s dungeon.
• New sub-biome: Oasis. Found in The Desert of Beginnings biome.
• New cattle: Drohmble.
• Drohmbles roam in the Oasis and eat crops to produce Blasting Dung.
• A total of over 35 new pieces of equipment, including armor, accessories, and weapons.
• Added 4 new bombs:
• Mouse Bomb;
• Blunder Bomb;
• Proximity Bomb;
• Void Bomb.
• Added new types of explosive throwable consumables: “Grenades”.
• Grenade;
• Stun Grenade;
• Fire Grenade;
• Poison Grenade;
• Charm Grenade.
• Added an “Explosives” skill tree with 8 new skills.
• New inventory-management feature that can come in different sizes: Pouches.
• Ore and Block Pouch;
• Seed and Crop Pouch;
• Fish Pouch;
• Valuable Pouch.
• Mage & Warlock playstyles have been expanded with new features as part of our ongoing improvements, with more to come in future updates.
• New pet: Arcane Symbiote.
• New multi-purpose weapon: Corrupted Meteor Staff
• New offhand: Minion Detonator
• Minions have been made more aggressive: they will now actively pursue and attack enemies.
• New armor sets
• Desert Guardian armor set
• Lily Pad armor set
• Blast armor set
• Tassel armor set
• New seed placement tool: Garden Trowel.
• Added a Content tab to the World Info menu. In this menu, players can opt-in to add new content to their existing worlds created in 1.0 or later, even if doing so may overwrite already explored areas in these worlds. This can, for example, include new boss dungeons that appear in existing biomes. Worlds that don’t opt-in will not see any changes to already explored areas, but might miss out on some of the new content.
• New hotbar swapping feature. The hotbar can be swapped to other rows in the inventory by clicking the new arrows to the left of the hotbar or using the shortcuts.
• Quick stack to nearby chests has been added as a button to the player’s inventory UI. A shortcut can be used to quick stack items to all nearby chests while the UI is closed too.
• New inventory item locking feature. Items in the player’s inventory can be locked using the new lock button in the player inventory UI. Locking an item will block it from being sorted and quick stacked.
• New Workbenches:
• Laboratory Table. Craftable in the Scarlet Workbench.
• Pouch Workbench. Bought from the Bearded Merchant.
• New biome-specific explosive wall variations.
• 2 new paintable decorations:
• Tapestry
• Banner
• 5 new achievements.
• Floracadas are less aggressive towards players until they have been damaged.
• It is now possible to break, pick up and place Cicada Burrows. "
• Minion Detonator’s description is now rewritten to reflect how it actually works, by avoiding the word explosion to not confuse it with explosion-type damage.

Other: 

• Added support for in-game Asian language input.
• Reworked the World Info menu to use a tabbed layout instead of having world generation parameters as a separate popup menu. The Create World menu also uses a similar layout.
• Added in-game hints to new characters if they haven’t completed basic tasks like crafting a torch within a few minutes of starting the game. The hints are automatically skipped if the player completes them before they are prompted, or if they reach certain milestones like defeating the first boss. They can also be disabled in the Gameplay settings.
• Lowered visual rarity of secondary scanners.
• Added a fallback “missing” icon when an inventory slot contains an invalid item, for example due to a bug or from uninstalling a mod. Previously, the slot would appear empty but still behave like it contained an item.
• Dedicated server files now include an ARGUMENTS.txt file which describes the available command line arguments in more detail.
• Added a -hashedworldseed flag to allow dedicated servers to set the hashed seed directly instead of using a string seed that is then hashed.
• When a dedicated server generates a random seed, it now first generates a random-seed string, which is then hashed, instead of generating the hashed seed directly. This means dedicated server seeds now behave identically to the regular game client.
• Added scroll bars to scrollable pages in the main menu.
• All settings menus now automatically become scrollable if they contain too many options to fit in the available space.
• The mouse scroll wheel can no longer be used to cycle through values in option menus, since this interacted with scrolling menus in unintuitive ways.
• Restored the frame surrounding chat messages, which was unintentionally removed in 1.0.1.
• Fixed a few text and translation issues.

Graphics: 

• Updated loot sprites for some backpacks with newer graphics.
• The Geode Wall Display now correctly uses its unpainted look when placed, instead of the purple variant.
• Updated certain buttons in the inventory to make them more distinct.

Audio: 

• Lowered the volume of the ambient sound effects of the Seasonal Merchant and the Rift Statue.

Game Balance: 

• Lowered the price of slime boss scanners.
• Slightly increased the loot drop for Nilipedes and Clay Burrowers.

Performance: 

• Worlds are now compressed using Brotli instead of Gzip, which is significantly faster. The .gzip file extension is still used to avoid cloud sync issues.
• The list of available converter types is now computed when the game boots and reused, instead of being recomputed every time a world is loaded.
• The Join Game UI is now more responsive while preparing to establish the connection.
• Fixed a rare lag spike caused by the world autosave sometimes being forced to run on the main thread on low performance machines.
• Removed several cases where the main thread would wait for worker threads to finish the tile map update.
• Ranged weapon projectiles can now cause damage to Snare Plants.

Bug Fixes: 

• Terrariums no longer visually swap contained critters when they come into view.
• Fixed a frequently reported issue where mobs (most notably cattle) were loaded before non-moving objects, meaning they could escape from enclosures.
• Added xterm as an alternative to gnome-terminal in the dedicated server launch script for Linux. This fixes an issue where the dedicated server would fail to launch when using the Steam Linux Runtime.
• Fixed a bug that caused inconsistent spacing between objects when placing them while moving.
• Fixed an issue that caused mobs spawned during boss fights to incorrectly drop loot even though they were not supposed to.
• Fixed several custom scenes which contained invisible Abyss Trees.
• The ingredient filter in the Cooking Pot’s cookbook is no longer limited to 40 ingredients.
• The clickable area for ingredient filters in the Cooking Pot is now better aligned with the visible part of the icons.
• Fixed an issue that caused Azeos' Easter variant color to unintentionally be carried over to regular Azeos.
• Added visible condition effects for Crystal Snails.
• Pets and minions now correctly target the Hydra's ice crystals.
• Dropped items no longer combine with other items being picked up by different players.
• Fixed an issue with bouncing projectiles colliding with wall corners, which would cause them to pass through the walls.
• Bouncing projectiles now correctly bounce in PVP.
• Piercing projectiles now correctly pierce in PVP.
• The Hunger bar should no longer be displayed as empty when the Mana bar toggles on.
• The damage text popup should now more correctly show damage after absorption.
• The amount of ores dropped from the Crystal Snail is now more accurate to their lost health.
• Bomb tick sounds should no longer be played once the bomb is destroyed.
• Paint Brushes no longer attempt to paint objects with the same color.
• Fixed an issue with the player's sprite that happened when using a shield while holding another shield of the same type.
• Fixed general misprediction issues for enemy attacks such as charging, that caused multiple damage numbers to appear.
• When placing objects, the chosen rotation should now be saved when swapping items.
• Fixed issue that locked a player’s movement when toggling guest mode for a user playing with a controller and holding an item.
• Fixed an issue that caused the incorrect text to be shown when the player spoke to the Core during a specific interaction.
• Fixed an issue that caused the Wooden Spike Traps to not show their spikes.
• Fixed an issue that caused Stone Fence Gates to incorrectly be placed in certain scenes instead of Wood Fence Gates. This will only affect newly generated scenes.
• Fixed an issue that caused watered Grass ground to be shown in the map as a different color than the normal Grass ground.
• Fishing is now interrupted when removing or swapping baits in the Off-hand slot.
• Previously, removing or swapping the bait at the final moments when fishing could cause the bait to not be consumed or non-bait offhand items to be consumed instead. The result of said action now is that no rewards are provided, and the bait isn't consumed. [list]
• Fixed an issue with Ghorm’s targeting logic that caused it to very often fail at charging towards the player while fighting it.
• All minions should now be able to attack and move on water.
• The attack range calculation for ranged minions and enemies is now similar to how the chasing stop distance and melee attack distance are determined. This means they now consider a combat radius, allowing them to attack from greater distances.
• Minions and pets no longer need to have line of sight to a target in order to chase an enemy that is engaged in combat with a player.
• Drohmbles, Strolly Polies and Kelples no longer display walking animation while not moving.
• The sparkle particles highlighting the inventory icon no longer appear while in the pause menu.
• Fixed issues with the physics collisions for Lava Rocks. 
[*] When changing the area of effect of a tool (such as shovels), the chosen size should now be saved when swapping to another slot. 

Source: https://steamstore-a.akamaihd.net/news/externalpost/steam_community_announcements/1793384379497261