I can't actually read the paper, but according to the accompanying article jamesf linked to:
Hoping to firm up such notions, Wissner-Gross teamed up with Cameron Freer of the University of Hawaii at Manoa to propose a “causal path entropy.” This entropy is based not on the internal arrangements accessible to a system at any moment, but on the number of arrangements it could pass through on the way to possible future states.
They are talking about "causal path entropy", a term they defined, not "entropy", the well known physics term. Confusing them would be a bad idea.
Power maximisation and entropy maximisation are closely related concepts
Power maximization is what an intelligent agent does that values power. What you linked to is a statistical tool for finding priors. They are unrelated. Am I misunderstanding something?
You need some background, by the sound of it. The main link between power maximization and entropy maximization is that power is usually acquired in order to perform work, and doing work eventually leads to generating entropy. So: the two ideas often make similar predictions.
As for the link between the Maximum entropy principle of E.T. Jaynes and Maximum entropy thermodynamics, the best resource on that topic which I am aware of is:
This paper seems relevant to various LW interests. It smells like The Second Law of Thermodynamics, and Engines of Cognition, but I haven't wrapped my head enough around either to say more than that. Abstract: