I finally found a reference to this issue elsewhere online - seems to occur when you have a non-UTF8 local. Cups tightened up it's char set handling (1.3.4), and supposedly hplip is at fault. Here's a simple workaround to demonstrate:
Me before: LANG=en_CA hp-toolbox detected nothing
Me now: LANG=en_CA hp-toolbox now sees the printer
LC_ALL=en
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