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Thanks for reporting! I noticed this too, but only after V1.1 was releases, it was fixed in V1.2 (see: https://timboe.itch.io/factory-farming/devlog/501428/sandbox-mode-minor-update)

does v1.2 has compatibility for save files from previous versions? Can I update it without and continue playing the same save without issues?

Yes, this will always be the case (V1.2 doesn't actually contain any changes to the save game format). Just note that if you originally side loaded before Feb then the you will have both versions installed and will have to copy the save data across to the new version. It might not be worth this hassle for 1.1->1.2, as the fixes are very small.