The in-game update notice says just that, "Game balance adjustments."
Nintendo support says the following:
Adjustments have also been made to balance the game and make for a more pleasant gaming experience.
What has been changed? I'm noticing some AI changes I think.
Best Answer
The list is quite long, but you can view the balance (and other) changes here: http://www.ssbwiki.com/List_of_updates/1.0.6_changelog