Did Subaru Ever Fix the Head-Gasket Problem?

No, but the other engine builders may be trying to catch up to Subaru. I see that the cylinders on a lot of engine blocks aren’t connected to the block at the top end. You can see into the water jacket almost all the way around the cylinder except where the cylinder is connected to the other cylinder.

This is no way to build an engine if you want the head gaskets to seal. There will be movement and there will be leaks.

I haven’t seen a Subaru block, but if you look in the overhaul section of a manual and it looks like what I described, Subaru hasn’t completely fixed it.

The Subaru engines may be just as good as what is being built today. Ease of manufacture seems to be the goal these days.