> In my opinion, the best solution that POSIX.1-202x should use is to require make to set the PWD macro itself. The whole SCCS stuff in POSIX already requires make to think about PWD, so I don't see why this shouldn't happen

It should't happen because make isn't the problem, it's sudo not setting PWD to what you expect by default. This isn't a make bug, it's a sudo bug. Author even explicitly says this. They just prefer to modify make, for.... reasons.