There's two big fixes here that fans have been asking about since launch. So one of the quests (the Mysterious Raider in Severed Connection) actually deals with one of the lengthiest and well-hidden questlines in the game, which you can dig into with more detail here.
Another one involves a food-related bug. So in certain circumstances, some food effects (which buff the party/player and provide bonuses, like extra XP) didn't apply correctly. Now, as of version 1.1.1, they should work. The team even has a retroactive fix for the talent arts button, which could bug out on occasion. There's also the classic vague "extra fixes" line that's typical of Nintendo patch notes ("in addition, we fixed some issues so that you can play the game comfortably"), which hopefully translates to extra quality of life features.
In the meantime, this is good table-setting for the upcoming DLC, and 2023 expansion.
Xenoblade Chronicles 3 patch Ver.1.1.1 [2022.9.7]
We have changed the action pattern of "Ryuho the Magatsu Tsubasa" so that it cannot be subjugated if it is in an area that cannot be reached in the assumed progression of the scenario.
Fixed a bug where the first battle in Shidou's awakening quest "Magane" may not end.
Fixed an issue where the battle with the "Mysterious Raider" that appears in the quest "Severed Connection" may not end.
Fixed a bug where some Collectopedia card request items "Gogol Gawaba" and "Gogol Detsumeru" could not be obtained.
Fixed a bug where various effects did not occur correctly for dishes other than "Specialty Mochimochi Steamed Potato" and "Teritsuke-style Ninin Pie Wrap".
Fixed a bug where the Talent Arts button would not be displayed and could not be pressed in a specific procedure. If this problem has already occurred, it will be restored by loading the save data after updating the software.
Fixed an issue where the text "Verkaufen" in the shop menu overlapped with the text next to it when the language setting was German.
In addition, we fixed some issues so that you can play the game comfortably.