diff --git a/core/vm/evm.go b/core/vm/evm.go
index 4ca4b3c96..c84fc1ee7 100644
--- a/core/vm/evm.go
+++ b/core/vm/evm.go
@@ -437,9 +437,11 @@ func (evm *EVM) create(caller ContractRef, codeAndHash *codeAndHash, gas uint64,
 		return nil, common.Address{}, gas, ErrNonceUintOverflow
 	}
 	evm.StateDB.SetNonce(caller.Address(), nonce+1)
-	// Fail if the caller is not allowed to create
-	// Need to check after nonce increment to evict failed tx from the pool
-	if !IsAllowedToCreate(evm.StateDB, caller.Address()) {
+	// Fail if the caller is not allowed to create. Limited to `CREATE`
+	// because this check targets raw transactions from EOA, and `CREATE2`
+	// within internal transactions is excluded.
+	// Need to check after nonce increment to evict failed tx from the pool.
+	if typ == CREATE && !IsAllowedToCreate(evm.StateDB, caller.Address()) {
 		return nil, common.Address{}, 0, ErrUnauthorizedCreate
 	}
 	// We add this to the access list _before_ taking a snapshot. Even if the creation fails,
diff --git a/params/version.go b/params/version.go
index 251bcc277..388c8d671 100644
--- a/params/version.go
+++ b/params/version.go
@@ -23,7 +23,7 @@ import (
 const (
 	VersionMajor = 1  // Major version component of the current release
 	VersionMinor = 7  // Minor version component of the current release
-	VersionPatch = 0  // Patch version component of the current release
+	VersionPatch = 1  // Patch version component of the current release
 	VersionMeta  = "" // Version metadata to append to the version string
 )