Overall, it felt a bit clunky, and I hope to provide enough feedback to explain my reasoning for this. I don't know if it was the engine you used, but It feels super awkward only being able to stand on predetermined tiles instead of having full range of motion. I think the dramatic difference in art from a pack and the assets you created yourself can be jarring, and I would've loved to see the whole game using original assets, just to have a unified art-style, though more on that when I cover graphics. I think the story was fine, and I liked the pacing was good too. (and what a cliffhanger! always leave the players wanting more.)
For theme, it fits, for sure. The town in this game is smaller than the towns in most games I've played this jam, which earns some bonus points there, though the town isn't the main focus on the game. Theme is always a hard category when the theme is the location. Like, yes- your game had a tiny town in it, but it's hard to determine if the tiny town was the theme of the game, you know?
For fun, I enjoyed the story and had fun reading it, though moving around outside of dialogue was clunky and slow. Again, I think it's a side effect of the engine you used to make this, but I think the engine was so limiting that it reduced the amount of fun I could have while playing it. The puzzle at the end could hardly be called a puzzle, but it definitely added something between walking from point A to point B.
For innovation, I don't want to sound too critical, so I'll throw the engine under the bus again. It feels like the environment you were making the game in was so restricting that it leaves little room for originality. The town's design was original, as with the characters, but the gamepaly felt dry.
Graphics! I have a lot to say here. The character designs are fantastic, and I honestly love the look of them. Seriously, I wish the entire game had the charm of those characters. The game doesn't need to have the fanciest water, or the highest-detail trees to look good, if you could make trees and grass that fit the characters you drew, it would look so much better in my opinion. The simple colors and outlined players would look great against simple grass and outlined walls, don't you agree? I feel like when you have all of the assets at your disposal, and you believe that the art provided to you is better than your own, you feel obligated to use it; But it creates a distracting contrast from the rest of the art that does nothing but make the player compare the two. Your artwork in a vacuum is pretty charming, and I would've enjoyed to see the environment match the characters.
Same goes for audio. The music you had is outstanding, though a bit generic, which leads me to believe those came from a pack as well. That said, if you aren't confident with your music composing skills, good music is always better than short-repetitive-bad music. Though I think having music that fits your characters would always be a plus, it's also a good call to use that assets at your disposal.
I enjoyed the humor! There was a good joke or two, which I think makes an RPG all the more enjoyable.
Finally, the mood. The lighthearted tone in the first half makes the dramatic ending all the more exciting! I seriously didn't see that coming! You did a great job building the world, and the characters have personality too! Marvelous work.
All around, I think there's some polish to be had, but you have a good premise!