So getting different shader types to blend was a bit of a chore but Godot has a built in thing where changing a shader changes all of the nodes tied to that shader. The big part is just organizing and I just wanted a single node to be in charge of all the lighting changes to do it on a whim. I had trouble since one of colors is actually an "environment" custom color tied to the camera node, so the camera needed its own script separate from that node to make things easier. Not the most clean but I got it working.
Sped up, going from sunset to night looks like this. I of course there probably won't even be any lighting but I'll probably add some lamp posts whizzing by to create a dynamic effect. The next part is to add multiple times of day to blend to (2 more to go) but I think for now I'll worry about other things.
Then I finally got around to doing 8 directions, kinda feel like the character design I had in my head is starting to change when I actually think about how thick the hood is going to be and what the hairstyle is actually shaped. It's probably why I hold off on this stuff. 
Also a sound update, Cowberry the composer came back to me with a small WIP of the song that will play at night. Was thinking of doing an animal crossing bit where where there's a different version of the same song depending on the weather/lighting.
20 Sec WIP here (Google Drive)
That's basically the direction we're heading into sound wise. Jazzy kind of lof-fi feel. I'm still thinking of a potential gameplay idea but it's hard to come up with something that won't break the calmness/chilling. Anyway stay tuned.