I can report that the update worked for me. After I updated, I added the Google Prepaid Card and my $10 balance showed up. About 30 minutes ago, I used Google Wallet at McDonalds successfully for lunch.
Favorite part? The "How in the hell did you do that?" look from the cashier!
I am getting my phone replaced after a lot of back and forth arguing with Sprint. I few weeks ago I tried to clear my Google Wallet Settings and had the issue where it hung at 99%. I have a feeling this bricked the element. The replacement will be here in 24 hours.