I started a playthrough with my friend in multiplayer and i'm pretty sure the mod still works. I haven't noticed any decrease in relationships with people over time. Although if others are having issues it seems like there is a substitute version in the other comments for 1.6+
You can try this one FRIENDS FOREVER (1.6) which is just a quick recompile of this mod, or so I think. In the description the recompiler also mentiones CJB cheats which comes with this very functionality (among many others).
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