I've unfortunately been in the hospital and a victim of recent cyber-attacks. I won't be able to make some changes to the game at this time. I hope to be able to soon enough. I'm sorry that you're experiencing technical difficulties. I know it maybe hard to ask, but try playing the game from a brand new save. That may help you. If I attempt a v1.1 update, I'll be sure to look into the Kraken Boss again. I don't think anyone else has run into this issue at this time, so most people should be okay. I'm sorry that you aren't, though. My apologies.
Edit: I don't know if this will help, but try turning battle animations off before the fight in the options menu.