This morning I played my first game of the newest build. I settled my first city, started research, and moved my sovreign around to explore the countryside. I build some improvements and train a few of each of the default units. I settle a second city and start the same process. Then I receive a message from another kingdom that reads like a wary introduction - a "Stay off our land" if you will. After this notice disappears, both of my settlements have converted to the newly contacted kingdom. No combat notification or anything, just changed alliegances.
Bug continues: I have no cities, but both research and taxes continue.