I get the impression that textbackground is not yet completely repaired in:

The small example below shows that location text starts at the left margin instead of at the chosen point in the text. That is, the green part should be "text with background" instead of "result. This is text w".

Paragraph background looks like it works again.

% Testing textbackground
\setuppapersize[A5]A5]
\definetextbackground[testA][%
	location=paragraph,state=start,background=color,backgroundcolor=yellow]
\definetextbackground[testB][%
	location=text,state=start,background=color,backgroundcolor=green]
\starttext
First para for test.
\starttestA
\input tufte
\stoptestA
Last para for text.\blank
Intermediate.\par
This is to fill up things a bit going to the next line in the result.
This is \starttestB text with background \stoptestB within.\blank
Afterwards.\par
\stoptext