There is also too much time spent on a city travel map annoyingly waiting to see if you get into another pointless encounter that you kill in 3 seconds flat (normal difficulty). It feels like pointless time bloat and unnecessary clicking.
Yes it advances time and yes there is a night and day system, but in a city at war and on fire, meh, who cares.
There are also several timed quests and some areas change with the passing of time. A thousand times better than BG3s never exploding ticking timebomb.