NWVault has posted that Obsidian released a patch to "v1.10 final" yesterday.
I tried using the updater but it told me my v1.06.980 was the latest. :shrug: Maybe the updater hasn't been updated yet. I haven't manually downloaded the patch either so I haven't seen the readme. (Edit: there isn't one)
Edit: A bit more info found from this nwn2 forum thread:
With the MoTB release imminent, we have been taking a look at the 1.07 patch and how it interacts with MoTB.
Many of you have seen already that we have been slowly bringing the code forks together now, so that the NWN2 patches are compatible with MoTB.
Patching the game is always a difficult process. When one thing is fixed, other things break. So, with that in mind we had to make a decision about how to handle the 1.07 patch with the MoTB release.
What we have decided is that, the 1.07 final patch will be "reversioned" to become 1.10. The 1.10 final patch will contain only data fixes from 1.07. It will not contain any programming fixes that are not already in 1.07. This means that some things, such as stealth, while they are fixed for us, may not be fixed in 1.10 for you. This is to make sure that when you have your copy of MoTB installed, the patch won't break it unnecessarily.
Now, for those of you that purchase and install MoTB, you should see all the fixes right away - including stealth - as they are "native" to that code. But for those of you that don't have MoTB, the fixes will be finalized in the patch after the MoTB release.
We apologize for any inconvenience, but feel this is the safest course of action for all players.