I don't know what the problem is, everything works fine for me. Maybe you have:
1. An old cheat mod;
2. A conflict with old saves;
3. Something else installed besides iPatch, causing a conflict;
4. The compressed version had a bug, which was later fixed;
I don't know what else it could be.
1. Downloaded it after confirming matched version
2. Started a complete new save
3. Cheat mod never caused a problem before
4. I hate wasting time on compressed versions since I have 24 TB of space between my "storage drives"
As to the new playthrough... without a cheat mod I can't make any headway towards that scene however I am almost to the point to start earning Relationship points with Alice
I have just discovered that even though I didn't install the I patch this time the MC is still referring to Sarah as Mom so I suspect I have to find the user files and delete the saves for it which may fix the problems entirely.
For anyone else having issues try a full delete of the game including opening "C:\Users\*Your account name*\AppData\Roaming\RenPy" and delete the "\Pillking" (or whatever name most closely matches that since I deleted it without recording the name) so that all records are removed.
Having run everything over after deleting the account saves in renpy I can confirm the images were fixed. I have still not added either the cheat or ipatch although I am moderately certain they are unrelated to the bug I thought needed fixing.