Quotehow do i go about updating my game from the 9-verb template?Currently both templates share the same features, except the save/load handling. You can export the save/load GUIs from the template and import them to your game. Also you need to export the optiongui module.
Actually migrating your game completely from one template to another might indeed be quite a pain I'd rather say: create a new game from Tumbleweed template and import your rooms into it. Afterwards apply your other changes, fonts colors and graphics.
Quotehowever in lucasarts games when you look at stuff you can still move while the text keeps displayingUnfortunately displaying speech is usually blocking in AGS. You could use BackgroundSpeech, but that way you would loose the talking animations with "lucas style speech".