Sorry for the belated response. Yeah, there were quite a few collision issues when developing the game and I must have missed a few. I'll publish a hotfix as soon as I can.

As for the game progression, you have to do the following to finish the first of the two "puzzles" of the game. I should probably make a walkthrough as a separate download, now that I think about it.
- Interact with the front of the pond in the backyard (this will inform you that you can fish there)
- Copy the fishing rod crafting guide from the survival handbook in the living room
- Grab the yarn, hook, and branch
- Interact with any of those three items to craft the makeshift fishing rod
- Grab the worm from the patch of dirt at the front of the house
- Fish at the pond
- Offer the cat the fish

Thank you for giving our game a play!

Should be fixed in the latest update.