Okay, I've figured it out.

The tadpole is supposed be changing us, it's not. The druids are supposed to finish their ritual any time now, they never finish it. The goblins are supposed to come attack, they never do (on their own, without your assistance). Gale is supposed to become a nuke, he doesn't.

And yet, we are resting again and again, presumably spending many hours doing so. Yet none of these events advance.

Why?

TIME IS NOT PASSING.

Yeah, the only logical conclusion is that time spent in the camp is not actually passing any time in the world. Maybe it IS an extradimensional space, a pocket plane, or the like. Maybe it's in a time distortion field of some kind. I mean, we get there through some weird teleporter runes, and it is clearly not IN the actual game world that we can explore.

So that's the canon I'm going with. When I rest, no time is actually passing. Makes everything else make sense.