While 1.1.7 is a free software patch, the fighters themselves (Cloud, Corrin, and Bayonetta) are separate paid DLC.

How to Update Super Smash Bros. for Wii U - Nintendo Support

By providing a detailed overview of the DLC Update 1.1.7 3D for Dairantou Smash Brothers, we hope to give players a comprehensive understanding of what's new and what to expect from this latest update. Whether you're a seasoned pro or a newcomer to the series, there's something for everyone in this exciting update.

Super Smash Bros. for Nintendo 3DS: A Guide to the 1.1.7 DLC Update