I seem to be softlocked on Day 2. Only quest I have is "A Good Night's Rest" which tells me to go to sleep, but it's the middle of the day, and when I try to the game gives me the message "I don't have time to sleep!".

Can't seem to progress time forward, and I can't do anything else.

Can you press the hourglass? or is that what you mean by moving time forward? otherwise could you upload your save file? and i'll take a look.