Here is Patch 1.0.2 notes:
Level 7 (Progress bug)
(This bug is only related to Controller players)
- Fixed a Progress bug where no matter how many crystals you collect or how many medals you earn, level 8 never unlocks and level 7 don't register the medals you earned.
Level 1
- Edited a tutorial about Miko grabbing ledges to clarify exactly which ledges he could grab.
Other:
- Fixed a typo at the beginning of the game.
- Edited the following sound FX a bit (jumping - walking - landing on the floor - shooting fireball - grabbing ledge) as it was a bit bass heavy.
- Fixed a bug where the timer do not start in some levels and other times it will start randomly (Controller related only).
(Continue reading if you're using a controller)
This could result to unlock some timer based challenges without actually finishing them which of course takes the fun of the idea of doing and unlocking challenges.
You can continue playing the story as normal for sure but if you want to do the challenges as it was intended I highly recommend deleting your Save by doing the following.
Go to C:\Users\"Your username"\AppData\Roaming\Miko Adventures Puffball
And delete everything inside.
This will remove your save and you can play on a new save with no issues.
Really sorry about this issue, it should be fixed now.