Yeah. Currently the second update has 12 new characters, 8 Final Fantasy, 4 alternate. While it seems like a small update...its massive. With each character's weapon, theres a skin change and a combat wheel change. A good example, is Cloud. He has his Buster Sword, with Retaliate and Braver. His fusion sword has Blade Beam, Limit break...then new additional commands in Limit Break.
As for the Lost Chapters, its in the pipe line. I originally had them planned on the next update. But I tricked my self into a harder idea but its pretty bad ass looking. But yes Lost chapters definitely need to be added.
As for new characters, they take anywhere from 4-8 hours to create, depending on the level of complexity of the character. Rinoa is part of season 2, she took about 10 hours but I also built new mechanics for her.
Type 0, is a game I wish I could have gotten into more. I bought the ps4 version but the combat felt meh too. Im a big Tales of guy, so whenever it comes to action combat, im always comparing the two, lol.
I hope you're enjoying the game. Id have to disappoint, but the next update won't be until October...but it will be a big one. Here's to hoping I dont burn out!