I think you are misunderstanding how Mode Manager works. The various ways that Mode can be set... time of day, presence, switch, etc. ... are triggers. Any time any of the triggers happens then the mode will be set accordingly. But Mode Manager doesn't constantly check to see if a trigger is still true. It fires when a trigger changes, and then waits for another change to fire again. And you can think of the various settings as having ors between them:
Set mode based on time of day OR
Set mode based on presence OR
Set mode with switches
V-Switch turns on, so mode = Asleep.
Time is Sunrise -30 minutes so mode = Day.
If you want time of day to not trigger a mode change when mode is Asleep, then, yes, you need to add Asleep as a mode to ignore time changes.
What mode do you want it to go into when the V-Switch turns off? Let's say, for example, that you want it to change to "Day" mode. Add:
Day: V-Switch sleep OFF
to the Set Mode with switches section. Then, since the mode is neither Asleep nor Away, the mode based on time of day should trigger.
You'll need to set up something that turns V-Switch off.
Yes, it will go back to day if that's what you have it set to do when the switch is turned off. Remember, these are all triggers. Night is only triggered at 9:00 PM, not 9:01 PM, 11:29 PM, 3:05 AM, nor any other time.
If you need logic to determine what mode you want set if the switch is turned off, then you probably need to set that up in Rule Manager. Mode Manager is only triggers. Rule Manager allows logic.