I just updated to 1.0.8 and the CSS has indeed messed up was fine when I was on 1.0.3 it seems it’s kbe_style.css returns 404.
it seems it’s adding /wp_knowledgebase/ to the path.
/wp-content/themes/twentytwelve/wp_knowledgebase/kbe_style.css is /wp-content/themes/twentytwelve/kbe_style.css
Not sure if your issue is the same?