She is wandering around the island and going in her home like any other villager. It's as if she forgot she was supposed to be moving out.No, you will not lose your progress. I do this on my Switch Lite in the case my wife wants to play on it while I play on my main Switch. She uses the physical game from her Switch and insert it into the Switch Lite. The Switch Lite and my Switch shares a digital copy of AC via my linked Nintendo account.
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Wait, I read your message wrong. So you're saying that Chevre is in her house, but not in boxes? Is she moving around the island?