Ok I had to go in and hard code this. Apparently the calendar-day.php has no argument for pagination! I had to set em-events.php (Events for a specific day template) to events-list.php rather than calendar-day.php and in the events-list.php I account for the argument of selected day to be passed if isset:
//specific day PAGINATION FIX!!!
if(isset($_REQUEST['calendar_day'])) {$args['scope'] = $_REQUEST['calendar_day'];}