Well spotted with this update.
I have installed it now and it went very smoothly. You just have to be patient and wait for the prompts.
It's pouring with rain here at the moment so I cant test it out but I will as soon as the weather clears.
Last week I purchased a brand NEW Karma on Ebay. It didn't come with the Gimble or a GoPro. I found a new gimble on Ebay for $50. I received both yesterday, Installed the Gimble and a Hero Black 7. This morning I powered it up and wanted it to update to v2.01 for both the drone and the controller. After downloading the update I took it out to fly. No problems with pairing. Everything worked perfect. Just to let you know that there is an update for both the drone and the controller. I do have several DJI drones as well, MavicPro, Mavic Air, Spark and a Phantom 3. I really love the smoothness of the video on the Karma and the video is excellent. As it has worked flawlessly, I also just ordered another battery.
I have no idea why this is happening. Like I said, mine was new out of the box and it updated both the controller and drone with no problems. You might want to do a search on YouTube for "gopro karma pairing issues". There are lots of video of others having the same problem. Might find the right cure. There is even one guy trying to get Karma owners to file a class action lawsuit against GoPro for this problem.