Full install is required.
This update contains some crazy new features, including a brand new arpeggiator note masking option (see https://www.youtube.com/watch?v=0GCOr33S23M),
support for double the amount of modules instances and double the amount of internal voices! Also added a bunch of new single cycle waveforms, improved additive phase editing and transient control, and a high quality distortion option, plus much more!
See the full changelog here: http://karmafx.net/?id=2
And yes, it's absolutely free for registered users. So go ahead and get it now using your regular download link or by right-clicking and choosing "Check for Update Now..." inside the synth.