This was a creative idea! I loved how the puzzle-solving and story-telling interlocked. I also appreciated that each options' dialogue changed depending on what I had already chose, particularly in the first puzzle.
I was a bit confused by the direction "in this order." Does this mean I chose a color in the correct position, or that two events are correct relative to each other? For example, I punched the bully sometime after blocking a hit, but is the 2nd, 3rd, or 4th position correct? After playing through the game, it seems like its the first option, in which case I think the text "~ events happened at the correct time" and "~events happened, but not at the correct time" would be more clear.
The first and third stories have a great color code, but the second story was particularly frustrating because I couldn't remember what color matched what action. Having a key on-screen, or using different icons (e.g. a fist, crossed arms, etc. instead of colors), would be immensely helpful. I had to look at the walkthrough for this story, and only then realized that walking out was an option. I think if there was a key, and the "in this order" text was clearer, I could have gotten to three correct events and then explored to find the fourth one.
Another possibility would be to include a version of Grandpa's fighter sprite walking left and turning his back on the bully, possibly with his arms down. This would let players know that it's something they're expected to do, and encourage them to walk all the way off-screen.