It adds to the story, IN YOUR VIEW. It really doesn't matter.
Call me crazy (I know you will), but I'm gonna go with the first option. According to a document from the Ohio Secretary of State, "There are breaks and you are not required to stand on your feet all day. " There's also the benefit of coffee, to, ya know, stay awake and reduce mistakes.
"Ya I would imagine more errors do get made at 3am vs 9pm"
You call them errors, I call them changing the vote count while everyone else is asleep.
"What happens in most swing states" is that ballots are counted on election night, in accordance with the state's laws. That's what happens in all states.