To avoid abusing notation, let $\|\cdot \|_1$ represent the usual $L^1$ norm
and $\|f\|_* = \|f\|_1 + \|f'\|_1$.
Consider $C^1[-1,1]$ with the above norm, and let $g_n(x) = {2 \over \pi}\arctan nx$. Note that the $g_n$ are smooth, odd, strictly monotonically
increasing, $g_n(0) = 0$, $|g_n(x) \le 1$ for any $x$ and if $x \neq 0$, $\lim_n g_n(x) = \mathbb{sgn} \ x$. The discontinuity of the limit function
at $x=0$ is the crucial element here.
If $\epsilon>0$, $m \le n$ and $x \ge \epsilon $, then
$|g_n(x)-g_m(x)| \le |1-g_m(x)| \le |1-g_m(x)| \le |1-g_m(\epsilon)|$. Then
$\|g_n-g_m\|_1 = 2\int_0^1 |g_n(x)-g_m(x)| dx \le 2 \epsilon + 2 |1-g_m(\epsilon)|$, and so $g_n$ are Cauchy in the $\| \cdot \|_1$ norm.
Define $f_n(x) = \int_0^x g_n(t)dt$, and note that $f_n' = g_n$. Note that
the $f_n$ are smooth, even and hence $f_n'(0) = 0$. It is not hard to show, but irrelevant to this proof, that $\lim_n f_n(x) = |x|$.
Note that $|f_n(x)-f_m(x) | \le \int_{-1}^1 |g_n(x) - g_m(x)| dx = \|g_n-g_m\|_1$, hence $\|f_n-f_m\|_1 \le 2 \|g_n-g_m\|_1$ and so, for
any $ \epsilon>0$, we have
$\|f_n-f_m\|_* \le 3 (2 \epsilon + 2 |1-g_m(\epsilon)|) $ from
which it follows that $f_n$ are Cauchy.
Then $f_n$ is Cauchy, but has no limit in $C^1[-1,1]$. Very roughly,
it has no limit
with respect to $\|\cdot \|_*$ because the only continuous function to
which the $f_n$ can converge is $x \mapsto |x|$ and this fails to be
differentiable, let alone continuously differentiable, at $x=0$.
To show that there is no limit in $C^1[-1,1]$, we suppose $\|f_n -f\|_* \to 0$
with $f \in C^1[-1,1]$
look for a contradiction.
First, note that $f$ must be even, since the $ f_n$ are. To see this,
let $\phi(x) = f(-x)$ and note that $\|f-\phi\|_1 \le \|f-f_n\|_1 + \|f_n-\phi\|_1 = 2 \|f-f_n\|_1$, and since $n$ is arbitrary, we have $\|f-\phi\|_1 = 0$. Since $f, \phi$ are continuous, we have $f= \phi$
and so $f$ is even.
Since $f$ is even, we have
$f'(0) = 0$. There is some $\delta>0$ such that if $|x| < \delta$, then
$|f'(x)| < {1 \over 2}$. However, $f_n'({\delta \over 2})=g_n({\delta \over 2}) \to 1$, which is
a contradiction.