While version 1.1.1 was purely for stability, the "good story" elements you are looking for were added in subsequent major updates:
This update focused on resolving two specific bugs on the Starfall Islands: Sonic Frontiers Switch NSP/XCI Update 1.1.1 ...
: It corrected a bug where a completion icon on Chaos Island remained locked even after the player finished the associated activities. Story and Content Evolution While version 1
: The base game's story, written by Ian Flynn, is widely noted for its more mature tone compared to previous titles, focusing on the mysterious Starfall Islands and the relationship between Sonic, his friends, and the AI character Sage. written by Ian Flynn