We just upgraded our dev site to CBsubs 1.2.1 and Free Lifetime Plan (FLP) registrants are now not receiving the initial email (the one with the confirmation link in it). We have two paid plans as well and registrants to these plans do receive the email.
For this FLP, "User Email Confirmation:" is set to Default (CB setting). The CB setting is "Require Email Confirmation" set to Yes.
Also, FLP registrants do receive the CBsubs initial email ("Email on first activation"). I see people discussing this issue here:
www.joomlapolis.com/forum/146-general/170177-email-confirmation-not-being-sent-on-registration
but we unpublished all non-core plugins and still no email is sent.
Big problem!