A lot of the camp and narrative stuff is tied to the time of day. Id rather things stay as is honestly
No, it really isn't. It's just tied to being at camp. And even that would be fixable with contextual animations (i.e. the characters would be placed to pose more or less in the same way regardless of the background).
Anyway, voted 2 with the same caveat of the previous thread (meaning: real time clock that freezes when even just one player is in turn-based mode to prevent weird desync issues).
NOT having a day/night cycle at all simply stinks and it's downright one of the worst decisions Larian made so far.
And designing one around the idea of having it as toggle is barely any better.