Yes I've started act 2 and there does seem to be a day/night cycle, so I think it did in fact update properly just didn't notice it at first. I expected there to be some sort of clock ui to show the time, but it's working just fine.
I plan to implement that stuff in the future but since this took a lot of time to set up, it will be what sticks for a couple of updates. But when I get the chance, I'll be adding days and clock ui type stuff, I'll be sure to. Still, glad to hear its working and I hope you enjoy this update!