This happened to me at some point with Sys-clk Editor and nxdumptool. I remember the problem going away when I updated Atmosphere to the latest version. I've never used blawar anything, by the way.
Glancing at the video files, ZX has subtitles baked into the US versions of the FMVs.
I tried mass-renaming the English text files to replace the Japanese ones along with the font and it actually did seem to result in English dialogue with voices, although naturally nothing else was changed from...
I'm on 8.1.0 and my working 1.1 update is 350 MB. It's weird that Goldleaf's acting up; I don't know anything about that.
This isn't related to your problem, but the DLC was updated when 1.1 came out. If you have DLC, find and install the new DLC over it.