I just loaded a save after the update and Brax looks like Lord Dredmor and has Lord Dredmor's description.
Yeah, that's a problem that happens with all pre-1.0.4. saves. If you make a new game, it won't be there. At least it's not game-breaking. Unless you attack Brax on level 1.
actually, it's kind of gamebreaking if you kill him. youll notice he also has dredmor's description and abilities. he will also give the dredmor killing achievement, and you wont be able to play any of your games, for they will all give the victory screen, effectively wiping your saves. damn dredmor! coming early, murdering brax, and wiping my saves. he really is evil.