No. If the official time of birth was 11:59pm on new years eve, you will select the option to indicate the child lived with you "the entire year".

No it does not. In the year that a child is born, the IRS deems that the child lived with you for the entire year, so answer 12 months, or the whole year.  As long as the child was born by December 31, 2016, they qualify.