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You and other villagers now have a proficiency level in all activities, though this update specifically focuses on crafting and gathering expertise. Becoming better at an activity will increase your likelihood to either find or craft higher quality items. The latter has a woven nature such that many things are considered when determining your success. For example, when baking, are you using a strong peel, and, what is the quality of the ingredients you're cooking with? For villagers, their mood will also play a key role.
A few weeks ago, how villagers choose to spend their time was mostly entirely overhauled. Beforehand, villagers would primarily pick activities based on their interests. Now, villagers are driven by an assortment of social needs, hunger, relief, cold, and motivation. I feel like towns now look a lot more lively and social, villagers feel more reactive and varied, and mood has a real impact. I've tweaked the nobs and balanced things again this patch, and I'm looking forward to playing with it the future to create even more interesting feedback loops with other actions.
Even earlier this year, villagers were granted the ability to actually hang around with you and with other villagers, especially if they got lonely during the day. Whilst they stick with someone, they observe their actions and occasionally make a remark. Overall, their experience and further expectation of this is tied to whether you do things that align with their interests. This has led to much more collective behaviour, with friends more often moving around and doing things together, whilst from time-to-time, also resulting in bigger groups socialising together. There's a lot to explore here in the future, especially in regards to villagers nearby giving you helpful advice as a form of a tutorial, and helping you with your goals as relationships improve.
As I've been releasing the regular updates, I've also been cooking Autonomy & Governance, the next major update. Since the last blog post, the placement flow of new buildings has been improved to properly mix the residential and industrial neighbourhoods. After fortifications are built, farming will move to the outskirts, beyond the walls. 
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