The primary online matchmaking issue this update seeks to fix is one where players who signed up for 1v1 matches would often find themselves in free-for-alls with different rules than expected. Patch 1.2.0 doesn’t fix things completely, but it does attempt to prioritize the settings the player selected when queuing for a match. That said, players are still not guaranteed to get exactly what they asked for.
As for the character changes. Nintendo hasn’t stated specifically what players can expect there, but they did provide a list of which characters have been tweaked. This includes:
Donky Kong, Duck Hunt, Greninja, Ice Climbers, Isabelle, Kirby, Link, Luigi, Olimar, Pac-Man, Toon Link, Villager, and Young Link.
The full patch notes from Nintendo’s in-game notice system can be found below.
Adjusted difficulty of approaching challengers
Online Gameplay
When matchmaking in Quickplay, the Format setting of your Preferred Rules will be more highly prioritized. This may cause matchmaking to take more time, and there’s still no guarantee that you’ll find a match that has your exact Preferred Rules. Increased the stability of the synchronous connection within Battle Arenas.
Misc.
Game balance adjustments. Various gameplay fixes.