[Freeciv] Unit within the radius of their home city don't cause unhappiness?

[saywhat@xxxxxxxxxxxx (Eddie Anderson)]

    In the file "news.txt" (which is in every FreeCiv distribution
that I've looked in) there is the following text:

 - Units within the radius of the city to which they belong no longer
   cause unhappiness.  This will allow much more realistic defense
   scenarios.


    The above text appears under the last heading in that "news.txt"
file.  That heading is "WHAT'S CHANGED SINCE 1.6.3:".  The above
paragraph is the only one that I have found, in any of the FreeCiv
documentation, that refers to that feature.

    So, based on what's written in the "news.txt" file, I assumed
that this feature has been part of FreeCiv since version 1.7.0.  The
problem is, FreeCiv doesn't work that way when I play it.  And
thinking back, I can't *ever* remember seeing FreeCiv work that way.
Granted, I've only played the 1.14x and later CVS versions (so maybe
this feature only existed in some earlier versions).

    My question is:  Has anyone here seen this feature work as
described?  If so, can you give me some pointers on how I might get
it to work for me?  (e.g. FreeCiv version, server options, rules
sets, location of city, etc. - whatever is relevant).

    As it is now, whenever a unit steps (even one square) outside of
a fortress or a city center (even if that city is that unit's home
city), it causes unhappiness.  (Of course, the gov't type when this
happens is either Democracy or Republic.)

    The way I interpret the above text from the "news.txt" file,
that should *not* happen.  Or am I missing something?  Thanks in
advance for any insight you can provide.

Eddie