If you are saying changed purposely. I recall no publish notes on the matter. Something I wouldn't generally miss.
I can't find it now either.
But I remember it. (I remember the change; I don't remember the notes, specifically, so maybe it wasn't announced?)
I can verify Dispel Evil working in the old way as recently as the first Magincia Invasion, when the city was smashed.
Sometime after that, it finally did dispel things, which it hadn't before. But it no longer "turned" evil or hostile creatures as it once had.
Once I got used to it, though, I find that it about as useful in both its incarnations.
-Galen's player