Thank you for the feedback!
The one button grab was a bit of an awkward decision; the original version of the game was meant to just have Left/Right/A/B (and it still is on mobile 2 player!), and almost every button combination was meant to be used for a full moveset (the exceptions being Left+Right, which is the same as pressing neither), along with the fact that it would fit 2 players more easily on one device/keyboard. However, I added a third button during testing that was the same as just pressing C, and while there is a buffer to make grabs easier I decided it wouldn't hurt to put it in. Smash Bros has a similar thing where grab can be done with one button or shield + attack.
Button mapping is a must for the final version, but some QoL features were never finished so I could get the demo done before I got busy. Definitely adding it later, though.
Auto-blocking was a bit of a tough decision, but what made me decide it was necessary was projectiles. In games like Street Fighter, you can crouch block to block an incoming projectile without moving, but in DracoFighter, only being able to block with back means either 1) walk speed / projectile speed would have to be adjusted so that the projectile will actually catch up to your backwards walking which is awkward, or 2) you'll be automatically frozen in place, which will prevent you from moving backwards at all. Neither sounded very appealing, though I would say standing still to block still makes it easier to get grabbed than walking backwards to block. And of course, I didn't want to add another button for blocking since making the game local multiplayer on one mobile device was one of the top priorities for simplicity.
(Also the AI is literally just random inputs lol, hopefully I can figure out a proper AI sometime)