Direct numerical simulations of two-phase, free-surface flow past a fully submerged, fixed circular cylinder are conducted for transitional Reynolds numbers
$400 \leqslant {\textit{Re}} \leqslant 2000$, with Weber number
${\textit{We}} = 1000$, Froude number
${\textit{Fr}} = 1$ and a fixed gap ratio
$G = 0.5$. This parameter combination corresponds to the gas entrainment regime characterised by the production of multiscale gas bubbles through interface breakup in the wake, which is of particular interest for its implications in enhancing gas transfer and mixing in environmental and engineering flows, such as air–water gas exchange processes in rivers and oceans, and the design and performance of naval and offshore structures. For
${\textit{Re}}= 400$, the jet forced through the
$0.5D$ gap where
$D$ is the diameter of the cylinder, efficiently convects opposite-signed vorticity downstream, suppressing the classical von Kármán instability and yielding a quasisteady recirculation bubble. The jet’s stabilising influence, however, breaks down once
${\textit{Re}} \approx 500$: periodic vortex shedding re-emerges and the wake becomes unsteady in spite of the continuing jet. The corresponding dimensionless shedding frequency Strouhal number
$St$ grows with
${\textit{Re}}$ as
$0.52-72.7{\textit{Re}}^{-1}$. The onset of unsteadiness first shortens the mean separation length but then drives it towards a saturation plateau for higher
${\textit{Re}}$ values. Surface rupture in the turbulent wake fragments entrained air into a multiscale bubble population whose number density follows
$S_b(R_{\textit{eff}}) \propto R_{\textit{eff}}^{-6}$, consistent with gravity–capillary breakup in breaking waves, where
$R_{\textit{eff}}$ represents the effective radii of the bubbles. Intermittency in entrainment corresponding to vortex shedding contrasts sharply with the finger-like structures observed under laminar conditions, underscoring the role of turbulent mixing. The coupled analysis of vorticity transport, shear-layer instability and bubble statistics elucidates how momentum exchange and air entrainment over a submerged body are governed under non-turbulent and turbulent conditions.