I noticed that if I change my Exit's alias to something custom then I can no longer see the direction button on the compass as the alias has changed from "In" to "Living Room" and now the only way to access it is to select the exit from the Places and Object list and click the "Go" Display verb as the compass itself is not showing it's direction.

Can you please tell me how to fix this?

Unfortunately, the compass uses the alias to determine which direction an exit goes.
If you want to make it so the player can type "go living room", you could add living room as an alternate alias.

There's probably a way round this, but it will be pretty complex.

I decided on using the suffix so that it will detail my exit that way.