If damping was good, it sat overnight then went bad I'm thinking maybe you have a low battery and the gen signal isn't sufficient to tell the AHC ecu it needs to turn on - maybe - or you could have a gut full of air still in the system. I'm leaning toward things that maybe temp related.
It would be good to know pressures and heights, did you reset the height sensor? Drive with Techstream on and monitor the damping steps?
Check for DTCs and do the 16 step test and lock it in position 1, softest, and go for a drive. That should tell you if it's a hydraulic/mechanical issue or electronic. The more relevant system data you can provide the better, it's easier then to eliminate what's not defective.
Did you do anything to the vehicle between when AHC/AVS was ok then not ok?