diff --git a/lib/ansible/template/__init__.py b/lib/ansible/template/__init__.py
index 6adb880dcaf..1aef060505b 100644
--- a/lib/ansible/template/__init__.py
+++ b/lib/ansible/template/__init__.py
@@ -144,7 +144,7 @@ class AnsibleContext(Context):
         '''
         if isinstance(val, dict):
             for key in val.keys():
-                if self._is_unsafe(key) or self._is_unsafe(val[key]):
+                if self._is_unsafe(val[key]):
                     return True
         elif isinstance(val, list):
             for item in val:
@@ -385,11 +385,11 @@ class Templar:
                             overrides=overrides,
                             disable_lookups=disable_lookups,
                         )
-                        unsafe = hasattr(result, '__UNSAFE__')
                         if convert_data and not self._no_type_regex.match(variable):
                             # if this looks like a dictionary or list, convert it to such using the safe_eval method
                             if (result.startswith("{") and not result.startswith(self.environment.variable_start_string)) or \
                                     result.startswith("[") or result in ("True", "False"):
+                                unsafe = hasattr(result, '__UNSAFE__')
                                 eval_results = safe_eval(result, locals=self._available_variables, include_exceptions=True)
                                 if eval_results[1] is None:
                                     result = eval_results[0]
diff --git a/lib/ansible/vars/unsafe_proxy.py b/lib/ansible/vars/unsafe_proxy.py
index 42847053c95..426410ab611 100644
--- a/lib/ansible/vars/unsafe_proxy.py
+++ b/lib/ansible/vars/unsafe_proxy.py
@@ -98,14 +98,10 @@ class AnsibleJSONUnsafeDecoder(json.JSONDecoder):
 
 
 def _wrap_dict(v):
-    # Create new dict to get rid of the keys that are not wrapped.
-    new = {}
     for k in v.keys():
         if v[k] is not None:
-            new[wrap_var(k)] = wrap_var(v[k])
-        else:
-            new[wrap_var(k)] = None
-    return new
+            v[wrap_var(k)] = wrap_var(v[k])
+    return v
 
 
 def _wrap_list(v):