I checked the lib, it seems no difference for the latest version, and the codec team don't have the positive answer for this, so my understanding is that the watermark will check the device of "/dev/mxc_mem", so there should be a soft link to map the MXS_VIIM to mxc_mem.
I think this is the better solution for updating the lib, if you don't mind updating, you can try to use the latest bsp which includes the latest lib, you can try it, if still failed, pls try to use the suggestion about soft link