The watch is great, but when we went to Daylight savings time earlier this year, it has not adjusted...not sure what the problem is or what to do. I've never had this problem before.

Select "change time zone" and press to remove the "automatically adjust clock for daylight saving time" symbol to automatically update the clock when daylight saving time is applied.

just reset the time as if the watch stopped
daylight time is not a special time just an hour earlier or later

You have to set the year, the month and the date. Then you set the time zone. After that you can set the local time. You may also have to set the Daylight Savings Time.
The watch has a built in calendar that may run from let's say January first 2000 to the year 2070 (just a guess). If you set the calendar correctly you do not have to adjust the date when a month has 30 days, or when it is a leap year.

Today my 6-year old Waveceptor has adjusted itself to daylight Savings time without my intervention. I was agreeably surprised. For all the years I have had the watch, I kept the module manual by my side just for the two times a year I have to adjust the time.
All this to tell you that you imperatively have to read the module's manual. If you do not have it visit the Casio Worldwide web site and download it. You need the module number. You will find it on the back of the watch. It is a 4-digit number inside a rectangle.

If you haven't got instructions on how to do this, you can get
instructions from the Casio web site.

Go to the casio web site "casio.com".

Select "support" and the "manuals",
watches;

Accept terms

Select "watch manual archive"

Read the number of the back of your watch and enter it into the search box

Look for the instruction about daylight saving time (DST).

You posted this in January, which is not during daylight savings time. The SMT setting doesn't turn on automatic DST switching for a particular timezone; rather, it is a manual override to adjust timezones to DST when it is actually active. There is no automatic DST adjustment for this watch (according to their FAQ). Turn SMT to OF for all timezones during winter months, and ON for applicable timezones during SuMmer Time (SMT).

Visit www.citizenwatches.com
Choose TECHNICAL SUPPORT and solve all problems.

You have to get in the right time zone, that’s why you are an hour off (and this may also occur if you are in an area that switches between daylight savings time each spring and fall).
Press mode until ZO appears on the watch face.
Press and hold ADJ. Time zone will begin to flash.
Select start/stop or adjust to get to the right time zone P, C, M, E (pacific, eastern, Mountain, central)
If desired , press mode to select DST (daylight savings time) and press start/stop or adjust to turn it on or off.
Press adjust when done.

I don't have wvq 202hdu but I have a waveceptor that had the same problem. After not being able to find a solution online, I went back and started playing with it and I figured it out on my wva-430a. Hopefully my instruction helps:

The problem is that the daylight saving time is set to ON (or maybe OFF) whereas it has to be set on Automatic (A). To change that on my wva-430a, I held the "Adjust/Display" button for three seconds. It showed "US 60" for me. Then I used the "Mode/Select" button to go to the next screen which shows CHI for Chicago (Central Time). Here you have to choose the city that corresponds to your time zone. Again by pressing "Mode/Select" it took me to the next screen which was the daylight saving option. The choices were ON/OF/A that could be cycled by pressing "Receiving/Set+" button. Set it to "A" for automatic. Then press Adjust/Display to see the last option for 12H/24H setting. Press Adjust/Display one more time to go out of the settings menu. Your watch should adjust itself immediately.