[makefile] CFLAGS vs CPPFLAGS

The CPPFLAGS macro is the one to use to specify #include directories.

Both CPPFLAGS and CFLAGS work in your case because the make(1) rule combines both preprocessing and compiling in one command (so both macros are used in the command).

You don't need to specify . as an include-directory if you use the form #include "...". You also don't need to specify the standard compiler include directory. You do need to specify all other include-directories.