this appears to be an issue on multiple AOSP roms, something google might have messed up, found this fix-- i'm trying now to find the APK he references as the included link dosen't work. if it fixes it i'll edit this post, if not, ill post a logcat
Daydream clock settings FC fix from baldwinguy77 on rootzwiki.com
Okay, my hunch was right. Lol sorry it took so long, had to do a couple of things while my build was...well building. Anyways, it turns out Google (for whatever reason) decided to use a bunch of proprietary files for the software in 4.2 as opposed to AOSP files. When you click on the settings in Daydream, it goes looking for the proprietary Clock class instead of the AOSP one which is included in this ROM.
In short, this ROM has DeskClock.apk (the AOSP version) when it needs to have DeskClockGoogle.apk (proprietary). If you have root, just download it from here: http://d-h.st/QJd
-> delete /system/app/DeskClock.apk -> push the downloaded file to system/app/ and make sure permissions are set correctly. Don't worry, it's still the cool shiny new clock, except it will make Android happy
Forgot to mention, you'll have to reboot after you replace the old apk. Also, if you see this OP, I would remove the AOSP DeskClock from the build and add DeskClockGoogle.apk - just another weird proprietary Google file mixup.
“Two hands working can do more than a thousand clasped in prayer.” ― Madalyn Murray O'Hair