I haven't installed the game yet, but do conversations in co-op now work as one would expect? With that I mean that if one of the players initiates a conversation, the other player receives a warning of this and is asked to join the conversation. After which the second player sees the same dialogue screen pop up as the player that initiated the conversation, can hear the NPC at hand talking, and perhaps even can suggest which answer should be picked by clicking on it? Or how does it work exactly now?
You don't get a warning but characters that are in dialog now have a speech balloon above their heads.
You can click on a character with such a balloon, as if you'd do to talk to them, to get the dialog window with all the history of that conversation, allowing you to re-read it all if you'd like.
Check the update video, you can see how it works there (
https://www.youtube.com/watch?v=SDp_H9w7Imc&t=4m20s)
