The pot file for translations is still corrupted in latest version - after creating the translations in poedit it does not let me save and get the mo file created because there is one original entry which is corrupted and can't overwrite it.
So then I downloaded a spanish translation file which was somehow fixed by another user and edited that one. It worked fine, but there was one word "tags" which was translated both in the WP po file and in the theme's po file but still appeared in English.
I found the reference in the content-footer.php so I thought if the translation does not work, I can still fix this by creating a child theme on the regular way as in the codex and as I did it already for couple of other themes on other websites. Created the magazine-basic-child folder, copied the php file into it and overwrote the "tag" word in it...did not work! Somehow the child theme was not recognized. I tested and overwrote the original theme file - the change worked! But it will be lost during the next upgrade. So the issue is definitely with the child theme function.