Has any progress been made on this issue?
I was just doing some experiments of my own and found the results to be
highly unpredictable. For example: near my home, at the mouth of the Chesapeake Bay (37°00.0' N, 076°00.0' W), the "watch error correction" of -00:45:32 worked great. However, near the Cape of Good Hope, South Africa (42°00.0' S, 018°00.0' E) the stars were not at all in the right positions, with or without the 45 min. correction. I'm using a highly accurate, free program called
Stellarium to check VS' accuracy. I am very familiar with celestial navigation. (I know at least 4 sight reduction methods and have memorized the formulas from the Naut. Almanac. I also shoot and reduce actual sights
and lunars on a regular basis with my own sextant here on the bay.)
This is all very disappointing because the whole reason I bought VS7 was to be able to practice sights when I don't have time to go out to the Bay.

When I found out that this feature was/is broken, I felt like I totally wasted my money. (Although I do like VS7, I could've just stuck with ShipSim.)
P.S.
There is still no mention anywhere on the VS website that this feature does not work aside from the following which is
buried in the "Sextant tutorial by Frank Sarfati":
Please note that in practice your “intercept” i.e. the difference between actual
elevation and calculated elevation, should be very small, in any event, less than 30
miles or 30 minutes of arc. You will notice that when doing sightings and lines of
position with data different than that used in this tutorial, you may find much larger
differences. The reason is that I’m not 100% sure of all the parameters of VS’ “celestial
mechanics” and there might be slight differences that I may have not taken into
account.
Seems like the least Ilan could do is let future prospective buyers know that if they're planning on buying the sim for the sextant feature not to bother.