Yes I did install the update. Just to be sure I went ahead and uninstalled v1.0 and v1.1 and did a clean install and ran the update again with the same result.
I have tried to build four different projects so far:
An existing project which ran fine on v1.0 so was already in the workspace and did not need to be imported.
A new project created by selecting "File" "New" "New S32DS Project".
A new project created by selecting "File" "New" "New S32DS Project From Example".
An S32 example project imported as you showed.
Always the same error:
Error: Program "make" not found in PATH