For me, the guests didn't even show up when they first arrived, I kept looking around then realized they are technically there but they won't show up unless you interact with them first.
Everytime you leave your party and come back they basically reset to the end of the Street and stay there until you greet them.
The relationship you built also resets back to greet or meet them.
All the time, actions, and energy used in the last 8 hours didn't stick.
I uploaded it on YouTube:
https://youtu.be/u-YoiGnNuVYIt details all guests and actions, and how it reset.
I reached level 10 in the first 15 minutes somehow. Not sure if that's real or a glitch. But all the relationships I built are gone. . .hopefully the party level sticks at least.