Odd thing I noticed, perhaps not related to our firmware but worth looking at further, if you press Ctrl-C during a time.sleep operation the board does a soft reset.
To repro, in the REPL run:
import time
time.sleep(5)
Then press Ctrl-C and you'll see the board resets instead of breaking out of the sleep:
>>> import time
>>> time.sleep(5)
PYB: soft reboot
#13 ets_task(40100164, 3, 3fff8408, 4)
Adafruit MicroPython v1.8.6-147-gd2aa05a on 2016-11-28; ESP module with ESP8266
>>>