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I am pretty sure this is the 1.2 as I managed to beat the wolf much more easily than when I did on the original. It just seems that the final boss might be more challenging. I could try a save file from scratch and see if it that might change anything.

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Now that's just weird. If it's really version 1.2, it should work just fine. I tested it out and they would still be defeatable even after being befogged twice. Plus I was working on those two updates while watching a friend play the game in each version so I got to see how the final boss changed after each update and there was no issue.

Tbh I'm not familiar with how RPG maker syncs old save files with new updates. Maybe it really is because of that because in some cases, loading an old save file in a new update could crash the game. 

But well somehow my friend's gameplay didn't have any issue with this so I gotta say I'm clueless as to why this happens. Sorry :'