The sprites look so good I mistakenly expected the Burrows/TSR level of quality. Alas, the sprites rarely move, barely have any variations, and cycle through them so rarely you're basically looking at static images most of the time. These days even the one-shots made for a contest in a week at least wiggle the sprites a little.
Also the antagonist's writing - the speech, the behavior, - is exactly the same as the rest of the slasher movie cast of high-schoolers. It kills the tension quite a bit. The rest of it is killed by the fact the scene is played completely straight. He literally tells you he is a supernatural entity haunting your dreams and he looks like one, no ambiguity. Receiving straight answers so soon in a mystery story feels unearned and falls flat.
Oh, and I'd love to hear what you have to say about the elephant in the room - why are you making a 'Not-Echo' VN in the first place? The comparisons were inevitable, but you made it too easy. Unless you're planning to subvert it in a smart way, the label might stick forever.