This is definitely in my top ten favorites. I liked the story and I absolutely loved the gameplay. I felt like it was challenging without being unfair, and the checkpoint system is extremely forgiving. I always love games that have a crafting mechanic, though I do think there needs to be a prompt for when the player does craft something. I lost many a match or candle by accidentally clicking something, thinking it'd give me a description first. And I like that you combined stealth and resource management in a way that was incredibly fun and still (slightly) nerve-wracking too.
I really liked the enemy AI and how it really forces a player to engage with the stealth mechanics this game is pushing us toward. Managing sanity OR visibility can be a lot for a player, and having to do BOTH at the same time was a challenge I was up for! I think my only problem was that sometimes it wasn't always clear when an enemy was right around a corner, and I did get ambushed quite a few times.
I agree with Noah that the only unforgiving part was that the inventory/crafting menu didn't pause the game. When I had a source of light, it was okay. But in really tight spots, it was difficult to have to open the menu to craft something I needed (I once ran out of candles and didn't realize it) and then move quickly because I realized the game was still going.
With all of this being said, this was amazing for a game jam entry and it's clear a lot of love went into this. The aesthetics reminded me of the SNES games I loved playing, and the music and ambience were top notch for a horror game. I really liked the story you had here, and the main character reminded me a LOT of Bakura from Yu-Gi-Oh. Definitely can't wait for a full release.