The Diplomacy Update (version 1.1) is now live! Same link as before I think, the file should say version 1.1 in the .zip file name. I'll update the credits and features list tomorrow, but feel free to explore it for yourself.
The only thing I will say is to make sure you turn the build embassy ability autocast off (as you should with any ability that costs resources) and I have noticed the AI will rarely build a lot of embassies at a single planet, but I've only noticed it after the fact and have not seen what causes that. If you see it happen any information will be appreciated.
Edit: You may have to wait a little bit for the download to update.