Very beautiful game. The ui sfx is satisfying, the music and rain feel nice and moody. Especially after that cutscene where the spool rolls in, I love that song. The game kinda reminded me of playing the Neopets PS2 game in the best way (it was one of the first games I ever played lol). The visuals and audio are pristine at this point, so good job on the update!
This controls method was new to me, but I felt like you intuitively explained how it worked, and I got used to it. I do wish you could move a bit faster, and climb up onto slopes a bit, but it paces the game well.
The darkness getting me was soo spooky, I think the effect towards the end is done super well. I do think you should explain that hazard a bit more, and it would be cool to space out the darkness effect instead of it happening all at once. I felt like I needed a bit more time to figure out how to prevent that. My guess was I needed to go back to the sleeping spot?