diff --git a/CHANGELOG.md b/CHANGELOG.md
index 311f22f..9c83980 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,30 @@ adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
 Nothing yet.
 
+## [1.2.0] - 2026-10-13
+
+Dependency and toolchain refresh, a quieter dependency-update report, and the
+Gradle configuration cache turned on. No runtime behavior, challenge content,
+or public DSL has changed.
+
+### Added
+- Makefile `versions-all` target: the dependency-updates plugin's full plain report, up-to-date dependencies included.
+- `org.gradle.jvmargs` in `gradle.properties`: a 4 GB heap for the Gradle and Kotlin daemons, a heap dump on out-of-memory, and UTF-8 file encoding.
+
+### Changed
+- `make versions` now prints only the dependencies with newer versions, those that could not be checked, and any Gradle update, via a custom `outputFormatter` in `build.gradle.kts`. Its help text no longer calls it the default target (`help` is).
+- Turned on the Gradle configuration cache (`org.gradle.configuration-cache=true`). `dependencyUpdates` stays marked incompatible, and `make versions` / `make versions-all` skip the cache for that one task.
+- Upgraded the Gradle wrapper from 9.7.1 to 9.8.1.
+- Bumped dependencies: Kotlin → 2.4.21, `readingbat-core` → 3.5.0, `common-utils` → 5.1.1.
+- Bumped build plugins: versions plugin → 0.66.0.
+- The Gradle wrapper jar and `gradlew.bat` were regenerated as part of the wrapper upgrade.
+
+### Documentation
+- Listed `make versions` and `make versions-all` in `README.md` and `llms.txt`.
+
+### Upgrade notes
+- `common-utils` crossed two major versions (3.2.2 → 5.1.1) during this cycle. The project uses only `GitHubRepo`, `FileSystemSource`, and `OwnerType` from it; the build and full test suite pass against the new version, but treat it as the highest-risk item if you pin transitively.
+
 ## [1.1.0] - 2026-09-21
 
 Dependency and toolchain refresh, plus line-ending normalization. No runtime
@@ -94,7 +118,8 @@ are less complete than later ones. Structured changelog tracking begins with
 - `andor7` function name mismatch, and the unregistered `front_back` challenge.
 - Several incorrect challenge return types.
 
-[Unreleased]: https://github.com/readingbat/readingbat-python-content/compare/1.1.0...master
+[Unreleased]: https://github.com/readingbat/readingbat-python-content/compare/1.2.0...master
+[1.2.0]: https://github.com/readingbat/readingbat-python-content/compare/1.1.0...1.2.0
 [1.1.0]: https://github.com/readingbat/readingbat-python-content/compare/1.0.1...1.1.0
 [1.0.1]: https://github.com/readingbat/readingbat-python-content/compare/1.0.0...1.0.1
 [1.0.0]: https://github.com/readingbat/readingbat-python-content/commits/1.0.0
diff --git a/Makefile b/Makefile
index 3bc01f7..8056830 100644
--- a/Makefile
+++ b/Makefile
@@ -1,5 +1,5 @@
 .PHONY: default help clean build lint format detekt detekt-baseline tests uberjar uber \
-		cc run versions upgrade-wrapper _require-gradle-version
+		cc run versions versions-all upgrade-wrapper _require-gradle-version
 
 GRADLE_VERSION := $(shell sed -n 's/^gradle-wrapper = "\(.*\)"/\1/p' gradle/libs.versions.toml)
 
@@ -42,9 +42,16 @@ cc: ## Continuous compilation (no tests)
 run: ## Start the server on port 8080
 	./gradlew run
 
-versions: ## Check for dependency updates (default target)
+# dependencyUpdates is marked incompatible with the configuration cache (build.gradle.kts), so a run with the cache on
+# builds an entry only to discard it, and says so. --no-configuration-cache skips the cache for this run instead.
+# build.gradle.kts gives the task a formatter that lists only what is behind; versions-all names the plugin's own plain
+# report, which also lists everything up to date.
+versions: ## List the dependencies with newer versions, and any that could not be checked
 	./gradlew dependencyUpdates --no-configuration-cache --no-parallel
 
+versions-all: ## The plugin's full dependency report, up-to-date dependencies included
+	./gradlew dependencyUpdates --no-configuration-cache --no-parallel --output-formatter=plain
+
 upgrade-wrapper: _require-gradle-version ## Upgrade the Gradle wrapper to the catalog version
 	# Gradle's documented upgrade procedure: the first run rewrites
 	# gradle-wrapper.properties using the *old* wrapper jar; the second run
diff --git a/README.md b/README.md
index 40d47e3..2a51575 100644
--- a/README.md
+++ b/README.md
@@ -21,6 +21,7 @@ make lint       # Run kotlinter + detekt
 make format     # Format Kotlin sources
 make cc         # Continuous compilation while you edit
 make uber       # Build and run the fat jar
+make versions   # List dependencies with newer versions (versions-all: full report)
 ```
 
 ## Adding a Challenge
diff --git a/RELEASE_NOTES.md b/RELEASE_NOTES.md
index ee67873..66d1ce3 100644
--- a/RELEASE_NOTES.md
+++ b/RELEASE_NOTES.md
@@ -1,5 +1,55 @@
 # Release Notes
 
+## 1.2.0 — dependency refresh and a quieter update report
+
+A maintenance release: current versions of the build toolchain and runtime
+dependencies, a dependency-update report that lists only what is behind, and
+the Gradle configuration cache turned on. No runtime behavior, challenge
+content, or public DSL has changed.
+
+### Highlights
+
+- **`make versions` lists only what is behind.** A custom `outputFormatter` in
+  `build.gradle.kts` prints one line per dependency with a newer version, a `?`
+  line for any that could not be checked, and a line for a newer Gradle. When
+  nothing is behind it prints `All dependencies are up to date`.
+- **`make versions-all`.** The plugin's full plain report, which also lists
+  every dependency that is already up to date.
+- **Gradle configuration cache on.** `gradle.properties` now sets
+  `org.gradle.configuration-cache=true`, and adds `org.gradle.jvmargs` with a
+  4 GB heap for the Gradle and Kotlin daemons, a heap dump on out-of-memory,
+  and UTF-8 file encoding.
+- **Gradle wrapper → 9.8.1.** Up from 9.7.1.
+- **Dependency upgrades.** Kotlin → 2.4.21, `readingbat-core` → 3.5.0,
+  `common-utils` → 5.1.1. Ktor (3.6.0), Kotest (6.2.5), and `kotlin-logging`
+  (8.0.4) are unchanged from 1.1.0.
+- **Build plugin upgrades.** versions plugin → 0.66.0. kotlinter (5.7.0) and
+  detekt (2.0.0-alpha.6) are unchanged.
+
+### Documentation
+
+- `README.md` and `llms.txt` list `make versions` and `make versions-all`.
+
+### Upgrade notes
+
+- `common-utils` crossed two major versions (3.2.2 → 5.1.1). The project uses
+  only `GitHubRepo`, `FileSystemSource`, and `OwnerType` from it, and the build
+  and full test suite pass against the new version.
+- The daemons now ask for a 4 GB heap. On a machine with little memory, lower
+  `-Xmx4g` in `gradle.properties`.
+- `dependencyUpdates` is not compatible with the configuration cache, and the
+  task says so. Run it through `make versions` or `make versions-all`, which
+  pass `--no-configuration-cache`.
+- Run `./gradlew --refresh-dependencies` (or `make build`) once after pulling so
+  the new plugin and dependency versions resolve.
+- The Java 25 toolchain requirement is unchanged.
+
+### Full diff
+
+See the [compare view on
+GitHub](https://github.com/readingbat/readingbat-python-content/compare/1.1.0...1.2.0)
+for the complete set of changes in this release.
+
 ## 1.1.0 — dependency refresh and line-ending normalization
 
 A maintenance release: current versions of the build toolchain and runtime
diff --git a/build.gradle.kts b/build.gradle.kts
index 3d1ba48..aa763d0 100644
--- a/build.gradle.kts
+++ b/build.gradle.kts
@@ -124,5 +124,23 @@ fun Project.configureVersions() {
     rejectVersionIf {
       isNonStable(candidate.version) && !isNonStable(currentVersion)
     }
+
+    // Prints only what is behind, and what could not be checked. The plugin's own report,
+    // which `make versions-all` asks for with --output-formatter=plain, also lists every
+    // dependency that is already up to date.
+    outputFormatter {
+      val behind = outdated.dependencies.sortedBy { "${it.group}:${it.name}" }
+      if (behind.isEmpty()) println("All dependencies are up to date")
+      behind.forEach { d ->
+        val latest = with(d.available) { release ?: milestone ?: integration }
+        println(" - ${d.group}:${d.name} ${d.version} -> $latest")
+      }
+      unresolved.dependencies.sortedBy { "${it.group}:${it.name}" }.forEach {
+        println(" ? ${it.group}:${it.name}:${it.version} could not be checked")
+      }
+      if (gradle.current.isUpdateAvailable) {
+        println(" - Gradle ${gradle.running.version} -> ${gradle.current.version}")
+      }
+    }
   }
 }
diff --git a/gradle.properties b/gradle.properties
index ef1db44..07c8afd 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -1,7 +1,8 @@
 group=com.readingbat
-version=1.1.0
+version=1.2.0
 
 kotlin.code.style=official
-org.gradle.caching=true
-org.gradle.configuration-cache=false
 org.gradle.daemon=true
+org.gradle.caching=true
+org.gradle.configuration-cache=true
+org.gradle.jvmargs=-Xmx4g -Dkotlin.daemon.jvm.options=-Xmx4g -XX:+HeapDumpOnOutOfMemoryError -Dfile.encoding=UTF-8
diff --git a/gradle/libs.versions.toml b/gradle/libs.versions.toml
index faccb44..1254f6d 100644
--- a/gradle/libs.versions.toml
+++ b/gradle/libs.versions.toml
@@ -1,15 +1,15 @@
 [versions]
 detekt = "2.0.0-alpha.6"
-gradle-wrapper = "9.7.1"
+gradle-wrapper = "9.8.1"
 jvm = "25"
 kotest = "6.2.5"
-kotlin = "2.4.10"
+kotlin = "2.4.21"
 kotlinter = "5.7.0"
 ktor = "3.6.0"
 logging = "8.0.4"
-readingbat = "3.4.0"
-utils = "3.2.2"
-versions = "0.64.0"
+readingbat = "3.5.0"
+utils = "5.1.1"
+versions = "0.66.0"
 
 [libraries]
 core-utils = { module = "com.pambrose.common-utils:core-utils", version.ref = "utils" }
diff --git a/gradle/wrapper/gradle-wrapper.jar b/gradle/wrapper/gradle-wrapper.jar
index eddabd2..9fa7f28 100644
Binary files a/gradle/wrapper/gradle-wrapper.jar and b/gradle/wrapper/gradle-wrapper.jar differ
diff --git a/gradle/wrapper/gradle-wrapper.properties b/gradle/wrapper/gradle-wrapper.properties
index ad7845b..2e7bb9f 100644
--- a/gradle/wrapper/gradle-wrapper.properties
+++ b/gradle/wrapper/gradle-wrapper.properties
@@ -1,6 +1,6 @@
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-9.7.1-bin.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-9.8.1-bin.zip
 networkTimeout=10000
 retries=0
 retryBackOffMs=500
diff --git a/gradlew.bat b/gradlew.bat
index a51ec4f..3185a43 100644
--- a/gradlew.bat
+++ b/gradlew.bat
@@ -26,6 +26,33 @@
 @rem Set local scope for the variables, and ensure extensions are enabled
 setlocal EnableExtensions
 
+@rem Catch executions from older scripts and ensure they exit cleanly.
+@rem This can be removed once we can be reasonably confident that few people
+@rem will be migrating directly to this new wrapper.
+goto afterSafetyNet
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
+goto exitWithErrorLevel
+:afterSafetyNet
+
 set DIRNAME=%~dp0
 if "%DIRNAME%"=="" set DIRNAME=.
 @rem This is normally unused
@@ -45,13 +72,14 @@ set JAVA_EXE=java.exe
 %JAVA_EXE% -version >NUL 2>&1
 if %ERRORLEVEL% equ 0 goto execute
 
-echo. 1>&2
-echo ERROR: JAVA_HOME is not set and no 'java' command could be found in your PATH. 1>&2
-echo. 1>&2
-echo Please set the JAVA_HOME variable in your environment to match the 1>&2
-echo location of your Java installation. 1>&2
+1>&2 echo.
+1>&2 echo ERROR: JAVA_HOME is not set and no 'java' command could be found in your PATH.
+1>&2 echo.
+1>&2 echo Please set the JAVA_HOME variable in your environment to match the
+1>&2 echo location of your Java installation.
 
 "%COMSPEC%" /c exit 1
+goto exitWithErrorLevel
 
 :findJavaFromJavaHome
 set JAVA_HOME=%JAVA_HOME:"=%
@@ -59,13 +87,14 @@ set JAVA_EXE=%JAVA_HOME%/bin/java.exe
 
 if exist "%JAVA_EXE%" goto execute
 
-echo. 1>&2
-echo ERROR: JAVA_HOME is set to an invalid directory: %JAVA_HOME% 1>&2
-echo. 1>&2
-echo Please set the JAVA_HOME variable in your environment to match the 1>&2
-echo location of your Java installation. 1>&2
+1>&2 echo.
+1>&2 echo ERROR: JAVA_HOME is set to an invalid directory: %JAVA_HOME%
+1>&2 echo.
+1>&2 echo Please set the JAVA_HOME variable in your environment to match the
+1>&2 echo location of your Java installation.
 
 "%COMSPEC%" /c exit 1
+goto exitWithErrorLevel
 
 :execute
 @rem Setup the command line
@@ -75,8 +104,9 @@ echo location of your Java installation. 1>&2
 @rem Execute gradlew
 @rem endlocal doesn't take effect until after the line is parsed and variables are expanded
 @rem which allows us to clear the local environment before executing the java command
-endlocal & "%JAVA_EXE%" %DEFAULT_JVM_OPTS% %JAVA_OPTS% %GRADLE_OPTS% "-Dorg.gradle.appname=%APP_BASE_NAME%" -jar "%APP_HOME%\gradle\wrapper\gradle-wrapper.jar" %* & call :exitWithErrorLevel
+endlocal & "%JAVA_EXE%" %DEFAULT_JVM_OPTS% %JAVA_OPTS% %GRADLE_OPTS% "-Dorg.gradle.appname=%APP_BASE_NAME%" -jar "%APP_HOME%\gradle\wrapper\gradle-wrapper.jar" %* & call :exitWithErrorLevel & goto exitWithErrorLevel
 
+@rem This label must not be changed. We rely on old scripts being able to jump to this point.
 :exitWithErrorLevel
 @rem Use "%COMSPEC%" /c exit to allow operators to work properly in scripts
 "%COMSPEC%" /c exit %ERRORLEVEL%
diff --git a/llms.txt b/llms.txt
index bf8f454..fc963ed 100644
--- a/llms.txt
+++ b/llms.txt
@@ -38,6 +38,7 @@ Each .py file has: a `# @desc` comment, a function implementing the challenge, a
 - Continuous build: `make cc`
 - Lint (kotlinter + detekt): `make lint`
 - Format Kotlin sources: `make format`
+- Dependency updates: `make versions` (only what is behind), `make versions-all` (full report)
 - JVM toolchain: Java 25
 - Testing: Kotest with JUnit5
 - Lint/format: kotlinter + detekt, configured via `.editorconfig` and `build.gradle.kts`