Update: Bethesda put out the word on Twitter today that the 1.2 update is now fully live. Fingers crossed that it works out better than the 1.1 patch.

Original story:

The Skyrim Special Edition 1.1 update went live yesterday, with a promise to fix some bugs and at least partially correct the audio issues that left the game sounding noticeably worse than its non-special predecessor. Unfortunately, it has apparently caused more problems than it fixed, and so another update is now available on Steam.

The 1.2 patch notes:

  • General stability and performance improvements
  • Fixed issue related to using alt-tab while playing the game (PC)
  • Fixed issue with water flow not rendering properly
  • Fixed crash related to changing from werewolf back to human form
  • Fixed crash related to reloading after changing Load Order of mods
  • General bug fixing and improvements with browsing Mods

For now, the update is still in beta, so if the game is working well for you in its current state, you should just let it go. If you are experiencing trouble, you can get it by right-clicking the Skyrim SE entry in your Steam library, then selecting Properties, then the Betas tab, and then "Beta" from the drop-down menu. After that, click on "Okay," and then stand clear while your game updates. When it's finished, it should appear as "Skyrim Special Edition [Beta]" in your library. Bethesda is taking feedback on the new update, for good or ill, on its forum.