did you went back to the mansion before talking to the lumberjack? if not, go back to the Mime and do their scene than go back to the lumberjack and scene must go as normal
Both paths to the south are still closed, and the rock that is blocking the area to the southwest of the daughter is still there. Seems like I just hit an unlucky softlock. I don't have a save before chapter 2 so I'll just die I guess. Gameplay and concept are good so I will come back some time in the future to play through again.