Lighting Glitch in 1.2.1 - [Smooth Lighting]

When placing a torch in the 1.2.1 update, the surrounding blocks do not update leaving some bad shadowing. Hope this helps and that you can fix this issue quickly! Thanks!

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Update by [Mojang] Mega_Spud (Jay Wells):
As a temporary workaround until this issue is fixed, you can turn off the smooth lighting option in the video settings to make things brighter.