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Yes the bullets only hurt from a distance and yes the time health regains when you go too far.
That's everything part of the game and it's feel.
The theme is time and we thought of narrating the whole time meaning.
The enemies regains time health again - The time you lost never comes back.
The bullet distances damage means - From time to time you have to take risks.
And there are many such features in the game.

Thanks For the feedback.