According to the Platform designer documentation, the AMBA 4 AXI-Lite slave can be interconnected to AXI4 master. However, in such a case, rlast signal is not generated. The problem seems to be related to altera_merlin_bust_uncompressor module which seems to have issue with Burst=1 (AXI-Lite). One can see in the enclosed waveform from SignalTap, that source_endofpacket strobe is never generated as assignment:
assign source_endofpacket = sink_endofpacket & last_packet_beat;
is never true in the waveform.