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The decision of who to say the bracelet is from is being moved to Eshtel's Side Story, which will be accessible in Season 2 Free Time segments when we get around to writing it.
Eshtel will be a fully romanceable LI and has not been downgraded in any way. I fixed a writing mistake I'd made with her in the first iteration of Season 1, which initially forced the player to wingman for Chiara and, as the complaints put it, "give her away." I realized this was one of the mistakes with writing WCA as a novel instead of a Visual Novel, and worked to correct it to give people access to Eshtel the way they wanted.