Love your game mate! It looks pretty nice and all those little animations give it this sort of good and cozy vibe.
I do have found some bugs or have some recommendations:
When crafting a building like the workbench or oven and looking up the sky simultaneously, the object gets stuck at a random distance sometimes.
I would probably remove stamina because it currently has no purpose. You cant sprint and only move at the same movement speed. So, you just trying to get your stamina from reaching zero with sleeping for no reason at all.
If you keep the sleeping and stamina mechanic I would recommend allowing the player to only sleep at night and only once the key is pressed. I died because I slept multiple times and ran out of food and water.
I also would increase the durability of the tools. Stone Axe and Pick Axe are almost broken after one tree or one boulder. I think twice the durability it has now would be good.
I would recommend changing the inventory to crafting menu arrow to a tab based menu. You have two buttons on top changing between inventory and crafting. This probably more of a style choice.
I like all those indicators when you aim at an object you can interact with, all those little animations to give you feedback. I would also add an indicator for where you can place a workbench and where not. (It also could be a bug that I couldn't place it on one Island but idk lol.)
You've got a prototype to a game that could be a nice couple of hours of fun. Add more content and write a little story to it and you got a game I am sure a bunch of people would buy. Love you work and keep it up!