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I've encountered a rather serious bug (I hope so).

I have researched cybernetics to the point I can augment soldiers and create the first MEC-armour as well as several foundry projects. I can build the "Paladin" armour in the workshops, augment the soldiers - but I don't have and can't build a MEC bay?

I have a feeling the repair-bay kind of interferes here as it suddenly displays holographic MEC-trooper silhouette when entering the repair bay menu, but it doesn't allow for any MEC options. I am however not sure if you actually NEED the MEC bay in LW?

You manufacture MECs in Workshop just as Carapace and other armors, not in Repair Bay Just switch to "Armor" section in Workshop and you will see your "MEC-1 Paladin" on the list.

That's true, but you had to build a MEC bay in vanilla, didn't you?