Have a basic rule that runs overnight, and no longer turning off after the 120 minutes.
Having to manually turn off in the am.
Your rule looks fine, should work.
Any changes on your hub or network that coincide with the role not working?
Do you have any logs from when it runs?
You could try modifying the rule to run when you're awake with debug logging turned on for the lights and the rule, and see if it works, and what logs you get...
It might be worth trying changing the restriction from "Restrict trigger and pending actions" to "Restrict only the trigger". Looking only at the logic the timing of two hours after a trigger at 11:38pm will actually fall on the next day and as your trigger occurs at 2 or 3 day intervals, the pending action would seem to occur on a non-trigger day. Also as you want the pending action to always happen following a trigger setting the restriction to "Restrict only the trigger" would seem to meet your intention.
Further to my earlier post, I have tried setting up two Basic Rules each turning on a single socket (outlet) a few minutes before midnight and then each turning off their respective socket 10 or 15 minutes later, i,e. after midnight. One of the Basic rules had "Restrict trigger and pending actions" set and the other had "Restrict only the trigger" set. As expected the Basic Rule with "Restrict trigger and pending actions" failed to turn off the associated sockets whereas the Basic Rule with "Restrict only the trigger" set successfully turned of it's associated socket.
The successful Basic Rule is shown below.
Whilst trying this out I noticed a possible bug/undocumented feature. As you can see in the above screenshot the Rule is labelled "Restricted" which is as it should be according to the online Hubitat Documentation for Basic Rules, "NOTE: When a Basic Rule is restricted, Restricted will appear next to the rule name in both the app, and in the Apps list." Note that the above screenshot was taken on a Sunday, with the Rule only allowed to run on a Saturday. However, if the restriction is changed so that the Rule is allowed to run on a Sunday, either instead or or as well as Saturday, then when looked at on a Sunday the word Restricted does NOT show in the app or the Apps list, as can be seen in the screenshot below.
This only appears to happen when the only restriction is which days of the week the rule is allowed to run on.
I am currently running version: 2.5.0.143 on a HE C8.
Thanks for the details...tagging @bertabcd1234 for any input/thoughts he may have on this.
Just to clarify, it seems the report in the original post is not a bug due to the restrictions being set to cancel triggers and pending actions rather than just triggers and the pending action necessarily taking place in a restricted day due to the restrictions having no consecutive days selected, right? That's what it looks like to me.
The "restricted" text in the app name is interesting, but there are several reasons the text might not update, including the fact that most pages that show the app names don't dynamically update (like the apps/automations page itself) and some, like Past Logs, don't necessarily show the current name at all. However, I'm assuming you're aware of this and are noting the actual text isn't changing. From that, just to be clear: does this affect app behavior, or just the app name? I don't see any clues that it should affect behavior, but I can see why it might be off until noon the day of rather than right away (again, just the text) ... but I'm afraid to change anything (or suggest it) if this hint is the only issue. 
@bertabcd1234, @danabw
As far as I can tell from my limited testing whether or not the label"Restricted" appears against the app name does not affect the way the app performs. The issue is that an app with restrictions is NOT labelled as such if the only restriction is on which days of the week that app is allowed on and it is allowed to run on the current day. There may be an issue with when lists get updated but surely if an app is restricted it should be labelled as such irrespective of the day of the week. When an Basic Rule app containing a restriction that only runs on other days of the week not including the current day of the week (and is labelled as "Restricted" in the list of apps) is opened and changed to allow it to run on current day of the week, after the final done has been clicked and the window returns to the list of apps, the label "Restricted" no longer appears against that app in the list even though the restriction remains as well as being contrary to the online Hubitat Documentation for Basic Rules, "NOTE: When a Basic Rule is restricted, Restricted will appear next to the rule name in both the app, and in the Apps list."
restricted only means it's restricted from running at this time/instant that's why when u alleviate it it disappears
It’s basically my Roomba rule.
Have some guests in town for the holiday, so it’s currently disabled.
I’ll try again and grab some logs after they leave.