How long do villagers craft for? People have told me they stop at the end of an hour but Katt has been crafting for a while possibly since before 12pm ACC but definitely since before 1pm ACC

No idea, I'd like to know the answer to this. I've just heard that you can get 3 DIY recipes from your villagers each day.

From my experiments I did the following,

Talked to the villager who was crafting and just played the game for a solid 2 hours straight and that same villager is still at their home crafting, then I logged out and logged back in and now the villager that was crafting is outside and a random villager was inside crafting, did the same thing and that villager is still crafting until I logged back out and logged in the game and that villager who was crafting is now outside.
then tried going to different Island and mystery island and it seems it cycles some villagers going in and out.

From this I believe its based on how long were you playing during the crafting so realistically maybe you can have them craft for a solid 2 hours based on my experience and they cycle either you 1. Log of the game and come back, 2. Visit different Island/Mystery Island.

please note that I only did 2 hours of in-game play through and im not sure if they go outside when you play longer so my experiments might change from time to time.