Could anyone please confirm if the Nephew Colors Hack works on this version?
Yes sure the nephew color hack works with this updated translation.
The nephew color hack just swaps the nephew palettes around and does not affect the text. You can see the 3 nephew palettes that are changed here.

PS: Overall, I think the v1.1 title screen looked better. "Magical Quest" is written in a bland way, and some parts seem to have been changed for the hell of it.
Thanks for your compliments about the old title screen. I'm quite glad some people liked it. For me that old subtitle was poorly made and was updated a long time ago, just was never released until now.
Only whats been listed in the change log has been updated, as there was specific issues. For example with the script, a couple of times in the old version it played Mickey's SE while Donald was speaking, which has been corrected in v1.2.
It would be really nice if the script from the GBA translation was ported to the SNES game someday.
That would be a fun project for you to do mushguy. Personally I think if you want to read the GBA script then play the GBA version. (That's what the GBA version is there for). I'd rather read the SFC version's script on the SNES.
It's quite funny that they merged the stage name "Harvest" festival into that hint text - "Harvest useful items from magic boxes".
Thanks for updating all these old translations. I've heard this is an awesome series; this will give me an excuse to finally play through it.
This and Great Circus Mystery are so much fun played as 2 Player co-op, that's why I really enjoyed this series.