I am unsure if this is a bug, but after reading the update notes I do not see anything relating to this:
In 1.95b, a full nanosuit makes you invincible, with all 10 armor points. But in 1.97 it is now missing one armor point. The body armor is 4 armor points in 1.95b, whereas in 1.97 it's 3.5. The leggings are 3 armor points in 1.95b and 2.5 in 1.97.
I would love to know if this is on purpose or if I did something wrong.