We have encountered some problems with path modifications from NSIS installers due to the fact that the default string management is limited to 1024 bytes and that string manipulations involved in path modification is truncating strings to 1024 and that is sometimes braking workstation environment (especially in development hosts where many tools are installed). BTW, There are many nsis built setups in the wild that are suffering from this problem.
We are using some different code derived from the AddToPath
function from Path manipulation but the problem stays similar.
The best workaround that we are using until now is by using the special build of NSIS that provides the large string support (of 8kB instead of 1 kB). That build is available in the special builds page of the NSIS wiki.