You need to edit graphics, press
to extract graphics, then open "GFX28.bin" in graphics folder(its in the same folder as where your rom is) with YY-CHR
, on bottom left there is "graphic format", change that to "2bpp GB", now you see the "MARIO" text that you can edit or just copy&paste the "LUIGI" graphics from below. When you are done, save and open Lunar magic and press
to insert graphics back to your rom.
Note that if you see "AllGfx.bin" in the Graphics folder, then you just need to scroll down until you see the graphics that used for status bar(and course clear), they are almost all the way to the down. If you later want to edit other graphics, set "graphic format" to "4bpp snes/pce cg".
To get proper palette/colors to show in YY-CHR, first in Lunar Magic
, save that palette file to somewhere, then on YY-CHR press "palette" then "open palette(.pal)..." and open the file that you just made with lunar magic. Now on YY-chr on bottom left there is button "PAL", press that and now you can chose the palette by pressing anywhere bottom left with bunch on colored squares, in this case top row, 3th is the proper one for the "MARIO" and "LUIGI" graphics.
I hope that makes sense, if not then just ask