Personally don't mind the change into this format but you need to polish some of the early dialogues that mention scenes that never happened in this reworked version. e.g morning after the party night, Gemma mentions the website but you have never talked about it before. Scene in the shower where you are peeking on her. MC says she shouldn't be doing it again but never did before. There might be some more but this is as far as I got for now.
Few extra things I noticed.
1) choice of letting the captain win or not doesn't change the coach dialogue. I am pretty sure you are aware of that and have a plan to adjust that in the future, hopefully. Coach should be able to tell you are holding back and when you let the captain win she should mention that at minimum.
2) when you get the event of making the website available, if you watch a movie with Gemma instead of making it and do it next day the game still thinks you did it right away and the days don't match. I think the text said Thursday while it was Friday. If you prolong it longer there might be even bigger mismatch.
Not sure if this is connected to this resulting mismatch or it's supposed to be that way but I got the event of volleyball practice on the day you should attend it and wasn't able to, could only on the next day of the practice. Maybe you are supposed to get the notice day early.
Also while I like this sandbox style of games it is true what others say. It s a lot of extra work to make the game feel alive and most devs aren't willing to put in the extra effort necessary.
Fortunately for you, you will have it easier than most because 1 you deal with daily life interactions, examples for extra dialogues are all around you to take inspiration from and 2 you are using AI art. As you get more experience with the SW you will be able to make the needed extra scenes quite easily compared to ppl with drawn art that either need to commission it or make it themselves.
No one wants to see the same scene with the same character and dialogue 15 times in a row when you enter particular room.
You will need at least 3-5 extra scenes for each time of day to make it feel more real.
E.g. afternoon when you come back from school or work, you meet Gemma in the living room and once she is lying on the couch chatting with someone on the phone next time she is watching TV, next time she is in the hall prepping to leave to meet some friends, next time she is getting a snack from the kitchen etc.
Similar thing will be needed for mornings and evenings, some of those leading to other events like her inviting you to go meet her friends, go shopping with her or go for a jog at the park etc.
Sure you will eventually cycle through everything but it will feel much better and as said you will have this step most devs shy away from way easier as you get more experience with the ai SW. Dialogues from daily live will be the easy part.