End of Chapter 1, Interlude 1

Back in the hotel, approach Simon to see a scene where he's training Lilysse. After that brief, unmarked event, another event marker will appear on Simon. Talk to him to start the unmarked event quest “Art Selection”. Here, you'll have to choose a type of art piece that should be put on the wall. Your selection will be noted by Simon and will appear later on.

After that event quest, talk to Simon again to find new Night quests to tackle. Make sure to finish all of them first since heading back to the Market Station to continue with the scenario will cause a series of story-related events that will push your progress to Chapter 2. Also, you can visit the Altar to perform another blood ritual. This should raise Arnice's level to LV3 and unlock more skills and abilities for her, including a new weapon form. Additionally, the Daily Activities feature will become available.

Tip: At this point, you can actually farm blood, exp, and even fetishes in the Old Count Mansion's Indoor Garden area. This gives you access to the boss area as well where you can fight the Blueblood Dragon for more Blood and Marks that can be used to alter your Servans' abilities.