diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 1898376..8e23121 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -12,6 +12,18 @@ change to the sidecar protocol bumps the minor.
 
 .. towncrier release notes start
 
+0.5.0b1 (2026-10-13)
+====================
+
+Bug Fixes
+---------
+
+- The packaged sidecar runs from its Python environment rather than the install
+  directory, so a Windows update can remove the old version. Its working
+  directory used to hold the install directory open, and the update stalled at
+  "cannot be closed. Please close it manually and click Retry". (`#4 <https://github.com/directelectron/de-shell/pull/4>`_)
+
+
 0.4.0 (2026-09-26)
 ==================
 
diff --git a/de_shell/__init__.py b/de_shell/__init__.py
index 8ccd24c..f16ec6c 100644
--- a/de_shell/__init__.py
+++ b/de_shell/__init__.py
@@ -20,6 +20,6 @@
 
 #: The package version — the one place it is written. pyproject.toml reads it
 #: (dynamic version) and the release workflow refuses a tag that disagrees.
-__version__ = "0.4.0"
+__version__ = "0.5.0b1"
 
 __all__ = ["ipc", "log_stream", "process_guard", "debug_flags", "compute"]
diff --git a/upcoming_changes/4.bugfix.rst b/upcoming_changes/4.bugfix.rst
deleted file mode 100644
index 225e720..0000000
--- a/upcoming_changes/4.bugfix.rst
+++ /dev/null
@@ -1,4 +0,0 @@
-The packaged sidecar runs from its Python environment rather than the install
-directory, so a Windows update can remove the old version. Its working
-directory used to hold the install directory open, and the update stalled at
-"cannot be closed. Please close it manually and click Retry".