Yes, it happens every day when it is not raining. They wear their seasonal costumes (70th, Halloween, Christmas, etc). Scroll through that Instagram page. You'll see the characters in all of their costumes.
Another good view is standing by the Christmas tree, facing the castle. You can get a good shot of M&M and the band marching down Main Street with the castle in the background. The only thing is that it is difficult to view from there and then run around to get a good spot for the performance in front of the train station.
Below is a picture of the characters at the end of Main Street as the gates close. This is a super fast photo op and you need to be prepared for it. It would be difficult to do all of the views/vantage points on the same day. Just giving you a variety of options in case you watch it over multiple days.
View attachment 1035339