As always, the Smash community’s data miners got to work. Their findings painted a clear picture:
: The update added compatibility for the final wave of Smash Bros. series amiibo figures: (including their Player 2 variants). Online Stability
, which frustrated many players who hoped for gameplay fixes. 2. The April Fools' "Patch Notes" Hoax
This is typically required if you are playing a dumped/backup copy of the game on a modified 3DS (CFW) or an emulator (like Citra), as the official Nintendo eShop is no longer available to download updates directly.
The title you provided mentions "DLC". The update (v1.1.7) is required to play the DLC, but the update file itself does not contain the characters (Cloud, Bayonetta, Corrin, etc.). You need a separate DLC file (usually named something like Super Smash Bros DLC.cia ).
This patch ensured that players who purchased these specific DLC characters could properly use their corresponding Amiibo figures to train, fight alongside, or battle against them in the 3DS version of the game.