diff --git a/package.json b/package.json
index e76375caf..18434b628 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
     "name": "zenstack-monorepo",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "description": "",
     "scripts": {
         "build": "pnpm -r --filter=\"!./packages/ide/*\" build",
diff --git a/packages/ide/jetbrains/build.gradle.kts b/packages/ide/jetbrains/build.gradle.kts
index ea42d3c2c..b788fb693 100644
--- a/packages/ide/jetbrains/build.gradle.kts
+++ b/packages/ide/jetbrains/build.gradle.kts
@@ -9,7 +9,7 @@ plugins {
 }
 
 group = "dev.zenstack"
-version = "2.12.0"
+version = "2.12.1"
 
 repositories {
     mavenCentral()
diff --git a/packages/ide/jetbrains/package.json b/packages/ide/jetbrains/package.json
index 1756b93c7..76239e2bc 100644
--- a/packages/ide/jetbrains/package.json
+++ b/packages/ide/jetbrains/package.json
@@ -1,6 +1,6 @@
 {
   "name": "jetbrains",
-  "version": "2.12.0",
+  "version": "2.12.1",
   "displayName": "ZenStack JetBrains IDE Plugin",
   "description": "ZenStack JetBrains IDE plugin",
   "homepage": "https://zenstack.dev",
diff --git a/packages/language/package.json b/packages/language/package.json
index cb604c634..c37178a38 100644
--- a/packages/language/package.json
+++ b/packages/language/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@zenstackhq/language",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "displayName": "ZenStack modeling language compiler",
     "description": "ZenStack modeling language compiler",
     "homepage": "https://zenstack.dev",
diff --git a/packages/misc/redwood/package.json b/packages/misc/redwood/package.json
index 185fc341f..a4141f7e2 100644
--- a/packages/misc/redwood/package.json
+++ b/packages/misc/redwood/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/redwood",
     "displayName": "ZenStack RedwoodJS Integration",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "description": "CLI and runtime for integrating ZenStack with RedwoodJS projects.",
     "repository": {
         "type": "git",
diff --git a/packages/plugins/openapi/package.json b/packages/plugins/openapi/package.json
index 18f44c96a..fc0b2c290 100644
--- a/packages/plugins/openapi/package.json
+++ b/packages/plugins/openapi/package.json
@@ -1,7 +1,7 @@
 {
   "name": "@zenstackhq/openapi",
   "displayName": "ZenStack Plugin and Runtime for OpenAPI",
-  "version": "2.12.0",
+  "version": "2.12.1",
   "description": "ZenStack plugin and runtime supporting OpenAPI",
   "main": "index.js",
   "repository": {
diff --git a/packages/plugins/swr/package.json b/packages/plugins/swr/package.json
index 470848279..4caeeef39 100644
--- a/packages/plugins/swr/package.json
+++ b/packages/plugins/swr/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/swr",
     "displayName": "ZenStack plugin for generating SWR hooks",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "description": "ZenStack plugin for generating SWR hooks",
     "main": "index.js",
     "repository": {
diff --git a/packages/plugins/tanstack-query/package.json b/packages/plugins/tanstack-query/package.json
index d1f4b5852..0103e506c 100644
--- a/packages/plugins/tanstack-query/package.json
+++ b/packages/plugins/tanstack-query/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/tanstack-query",
     "displayName": "ZenStack plugin for generating tanstack-query hooks",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "description": "ZenStack plugin for generating tanstack-query hooks",
     "main": "index.js",
     "exports": {
diff --git a/packages/plugins/trpc/package.json b/packages/plugins/trpc/package.json
index 88accf0d6..bfe95e0a3 100644
--- a/packages/plugins/trpc/package.json
+++ b/packages/plugins/trpc/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/trpc",
     "displayName": "ZenStack plugin for tRPC",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "description": "ZenStack plugin for tRPC",
     "main": "index.js",
     "repository": {
diff --git a/packages/runtime/package.json b/packages/runtime/package.json
index 894ca7541..79bc5322f 100644
--- a/packages/runtime/package.json
+++ b/packages/runtime/package.json
@@ -1,7 +1,7 @@
 {
     "name": "@zenstackhq/runtime",
     "displayName": "ZenStack Runtime Library",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "description": "Runtime of ZenStack for both client-side and server-side environments.",
     "repository": {
         "type": "git",
diff --git a/packages/runtime/src/cross/model-meta.ts b/packages/runtime/src/cross/model-meta.ts
index 3b27f1686..727038fd4 100644
--- a/packages/runtime/src/cross/model-meta.ts
+++ b/packages/runtime/src/cross/model-meta.ts
@@ -86,8 +86,7 @@ export type FieldInfo = {
     relationField?: string;
 
     /**
-     * Mapping from foreign key field names to relation field names.
-     * Only available on relation fields.
+     * Mapping from relation's pk to fk. Only available on relation fields.
      */
     foreignKeyMapping?: Record<string, string>;
 
diff --git a/packages/runtime/src/enhancements/node/default-auth.ts b/packages/runtime/src/enhancements/node/default-auth.ts
index f151d014f..8bdd76490 100644
--- a/packages/runtime/src/enhancements/node/default-auth.ts
+++ b/packages/runtime/src/enhancements/node/default-auth.ts
@@ -126,7 +126,7 @@ class DefaultAuthHandler extends DefaultPrismaProxyHandler {
                 return;
             }
 
-            if (context.field?.backLink && context.nestingPath.length > 1) {
+            if (context.field?.backLink) {
                 // if the fk field is in a creation context where its implied by the parent,
                 // we should not set the default value, e.g.:
                 //
@@ -134,23 +134,16 @@ class DefaultAuthHandler extends DefaultPrismaProxyHandler {
                 // parent.create({ data: { child: { create: {} } } })
                 // ```
                 //
-                // event if child's fk to parent has a default value, we should not set default
+                // even if child's fk to parent has a default value, we should not set default
                 // value here
 
-                // fetch parent model from the parent context
-                const parentModel = getModelInfo(
-                    this.options.modelMeta,
-                    context.nestingPath[context.nestingPath.length - 2].model
-                );
-
-                if (parentModel) {
-                    // get the opposite side of the relation for the current create context
-                    const oppositeRelationField = requireField(this.options.modelMeta, model, context.field.backLink);
-                    if (parentModel.name === oppositeRelationField.type) {
-                        // if the opposite side matches the parent model, it means we currently in a creation context
-                        // that implicitly sets this fk field
-                        return;
-                    }
+                // get the opposite side of the relation for the current create context
+                const oppositeRelationField = requireField(this.options.modelMeta, model, context.field.backLink);
+                if (
+                    oppositeRelationField.foreignKeyMapping &&
+                    Object.values(oppositeRelationField.foreignKeyMapping).includes(fieldInfo.name)
+                ) {
+                    return;
                 }
             }
 
diff --git a/packages/runtime/src/enhancements/node/proxy.ts b/packages/runtime/src/enhancements/node/proxy.ts
index e063f002b..c940c9af6 100644
--- a/packages/runtime/src/enhancements/node/proxy.ts
+++ b/packages/runtime/src/enhancements/node/proxy.ts
@@ -267,12 +267,7 @@ export function makeProxy<T extends PrismaProxyHandler>(
                 if ($extends && typeof $extends === 'function') {
                     return (...args: any[]) => {
                         const result = $extends.bind(target)(...args);
-                        if (!result[PRISMA_PROXY_ENHANCER]) {
-                            return makeProxy(result, modelMeta, makeHandler, name + '$ext', errorTransformer);
-                        } else {
-                            // avoid double wrapping
-                            return result;
-                        }
+                        return makeProxy(result, modelMeta, makeHandler, name + '$ext', errorTransformer);
                     };
                 } else {
                     return $extends;
@@ -289,7 +284,7 @@ export function makeProxy<T extends PrismaProxyHandler>(
                 return propVal;
             }
 
-            return createHandlerProxy(makeHandler(target, prop), propVal, prop, errorTransformer);
+            return createHandlerProxy(makeHandler(target, prop), propVal, prop, proxy, errorTransformer);
         },
     });
 
@@ -303,10 +298,15 @@ function createHandlerProxy<T extends PrismaProxyHandler>(
     handler: T,
     origTarget: any,
     model: string,
+    dbOrTx: any,
     errorTransformer?: ErrorTransformer
 ): T {
     return new Proxy(handler, {
         get(target, propKey) {
+            if (propKey === '$parent') {
+                return dbOrTx;
+            }
+
             const prop = target[propKey as keyof T];
             if (typeof prop !== 'function') {
                 // the proxy handler doesn't have this method, fall back to the original target
diff --git a/packages/schema/package.json b/packages/schema/package.json
index 98c337e03..1980506f2 100644
--- a/packages/schema/package.json
+++ b/packages/schema/package.json
@@ -3,7 +3,7 @@
     "publisher": "zenstack",
     "displayName": "ZenStack Language Tools",
     "description": "FullStack enhancement for Prisma ORM: seamless integration from database to UI",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "author": {
         "name": "ZenStack Team"
     },
diff --git a/packages/sdk/package.json b/packages/sdk/package.json
index 46f969299..146755e2d 100644
--- a/packages/sdk/package.json
+++ b/packages/sdk/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@zenstackhq/sdk",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "description": "ZenStack plugin development SDK",
     "main": "index.js",
     "scripts": {
diff --git a/packages/server/package.json b/packages/server/package.json
index 46720f463..a3fe81e73 100644
--- a/packages/server/package.json
+++ b/packages/server/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@zenstackhq/server",
-    "version": "2.12.0",
+    "version": "2.12.1",
     "displayName": "ZenStack Server-side Adapters",
     "description": "ZenStack server-side adapters",
     "homepage": "https://zenstack.dev",
diff --git a/packages/testtools/package.json b/packages/testtools/package.json
index 51533ab1f..0e2b4fba5 100644
--- a/packages/testtools/package.json
+++ b/packages/testtools/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@zenstackhq/testtools",
-  "version": "2.12.0",
+  "version": "2.12.1",
   "description": "ZenStack Test Tools",
   "main": "index.js",
   "private": true,
diff --git a/tests/integration/tests/enhancements/proxy/extension-context.test.ts b/tests/integration/tests/enhancements/proxy/extension-context.test.ts
new file mode 100644
index 000000000..f84fd1e84
--- /dev/null
+++ b/tests/integration/tests/enhancements/proxy/extension-context.test.ts
@@ -0,0 +1,78 @@
+import { loadSchema } from '@zenstackhq/testtools';
+
+describe('Proxy Extension Context', () => {
+    it('works', async () => {
+        const { enhance } = await loadSchema(
+            `
+            model Counter {
+                model String @unique
+                value Int
+                
+                @@allow('all', true)
+            }
+            
+            model Address {
+                id   String @id @default(cuid())
+                city String
+                
+                @@allow('all', true)
+            }
+            `
+        );
+
+        const db = enhance();
+        const dbExtended = db.$extends({
+            client: {
+                $one() {
+                    return 1;
+                }
+            },
+            model: {
+                $allModels: {
+                    async createWithCounter(this: any, args: any) {
+                        const modelName = this.$name;
+                        const dbOrTx = this.$parent;
+
+                        // prisma exposes some internal properties, makes sure these are still preserved
+                        expect(dbOrTx._engine).toBeDefined();
+
+                        const fn = async (tx: any) => {
+                            const counter = await tx.counter.findUnique({
+                                where: { model: modelName },
+                            });
+
+                            await tx.counter.upsert({
+                                where: { model: modelName },
+                                update: { value: (counter?.value ?? 0) + tx.$one() },
+                                create: { model: modelName, value: tx.$one() },
+                            });
+
+                            return tx[modelName].create(args);
+                        };
+
+                        if (dbOrTx['$transaction']) {
+                            // not running in a transaction, so we need to create a new transaction
+                            return dbOrTx.$transaction(fn);
+                        }
+
+                        return fn(dbOrTx);
+                    },
+                },
+            },
+        });
+
+        const cities = ['Vienna', 'New York', 'Delhi'];
+
+        await Promise.all([
+            ...cities.map((city) => dbExtended.address.createWithCounter({ data: { city } })),
+            ...cities.map((city) =>
+                dbExtended.$transaction((tx: any) => tx.address.createWithCounter({ data: { city: `${city}$tx` } }))
+            ),
+        ]);
+
+        await expect(dbExtended.counter.findUniqueOrThrow({ where: { model: 'Address' } })).resolves.toMatchObject({
+            model: 'Address',
+            value: cities.length * 2,
+        });
+    });
+});
diff --git a/tests/regression/tests/issue-2014.test.ts b/tests/regression/tests/issue-2014.test.ts
new file mode 100644
index 000000000..4ebdb2b4e
--- /dev/null
+++ b/tests/regression/tests/issue-2014.test.ts
@@ -0,0 +1,39 @@
+import { loadSchema } from '@zenstackhq/testtools';
+
+describe('issue 2014', () => {
+    it('regression', async () => {
+        const { prisma, enhance } = await loadSchema(
+            `
+            model Tenant {
+              id    Int    @id @default(autoincrement())
+            
+              users User[]
+            }
+            
+            model User {
+              id       Int    @id @default(autoincrement())
+              tenantId Int    @default(auth().tenantId)
+              tenant   Tenant @relation(fields: [tenantId], references: [id])
+            
+              @@allow('all', true)
+            }
+            `,
+            { logPrismaQuery: true }
+        );
+
+        const tenant = await prisma.tenant.create({ data: {} });
+        const user = await prisma.user.create({ data: { tenantId: tenant.id } });
+
+        const db = enhance(user);
+        const extendedDb = db.$extends({});
+
+        await expect(
+            extendedDb.user.create({
+                data: {},
+            })
+        ).resolves.toEqual({
+            id: 2,
+            tenantId: tenant.id,
+        });
+    });
+});
diff --git a/tests/regression/tests/issue-2019.test.ts b/tests/regression/tests/issue-2019.test.ts
new file mode 100644
index 000000000..e5eea9254
--- /dev/null
+++ b/tests/regression/tests/issue-2019.test.ts
@@ -0,0 +1,87 @@
+import { loadSchema } from '@zenstackhq/testtools';
+
+describe('issue 2019', () => {
+    it('regression', async () => {
+        const { prisma, enhance } = await loadSchema(
+            `
+            model Tenant {
+                id      String    @id @default(uuid())
+
+                users   User[]
+                content Content[]
+            }
+
+            model User {
+                id       String          @id @default(uuid())
+                tenantId String          @default(auth().tenantId)
+                tenant   Tenant          @relation(fields: [tenantId], references: [id])
+                posts    Post[]
+                likes    PostUserLikes[]
+
+                @@allow('all', true)
+            }
+
+            model Content {
+                tenantId    String @default(auth().tenantId)
+                tenant      Tenant @relation(fields: [tenantId], references: [id])
+                id          String @id @default(uuid())
+                contentType String
+
+                @@delegate(contentType)
+                @@allow('all', true)
+            }
+
+            model Post extends Content {
+                author   User            @relation(fields: [authorId], references: [id])
+                authorId String          @default(auth().id)
+
+                comments Comment[]
+                likes    PostUserLikes[]
+
+                @@allow('all', true)
+            }
+
+            model PostUserLikes extends Content {
+                userId String
+                user   User   @relation(fields: [userId], references: [id])
+
+                postId String
+                post   Post   @relation(fields: [postId], references: [id])
+
+                @@unique([userId, postId])
+
+                @@allow('all', true)
+            }
+
+            model Comment extends Content {
+                postId String
+                post   Post   @relation(fields: [postId], references: [id])
+
+                @@allow('all', true)
+            }
+            `,
+            { logPrismaQuery: true }
+        );
+
+        const tenant = await prisma.tenant.create({ data: {} });
+        const user = await prisma.user.create({ data: { tenantId: tenant.id } });
+        const db = enhance({ id: user.id, tenantId: tenant.id });
+        const result = await db.post.create({
+            data: {
+                likes: {
+                    createMany: {
+                        data: [
+                            {
+                                userId: user.id,
+                            },
+                        ],
+                    },
+                },
+            },
+            include: {
+                likes: true,
+            },
+        });
+        expect(result.likes[0].tenantId).toBe(tenant.id);
+    });
+});