Now that I've finished the game (the original version), I have to say, this is far more substantial than I was ever thinking it would be. With some added polish and art, it could pretty easily work as a retail game, I think. The pacing was nice, with new areas, items, and mechanics to find pretty consistently throughout the game. I really enjoyed the cute story, the battle art, the enemy designs, and the world.
There were a few things that I think could be improved, some of which seem to have already been. The two later bosses felt a little HP spongey compared to your damage output, but I think you've fixed that already. I found status effects to be a bit too common at times, especially poison, which was a pain when antidotes were so limited. There was also one instance of an enemy (the dreamcatcher one) putting me to sleep so consistently that I was stun-locked to death on turn one. Even with the accessory to reduce sleep chance, I found that I was getting put to sleep very often (I think this item should make you immune personally). Finally, I liked how many skills there were in the game and they all seemed pretty unique, but it did seem like there wasn't quite enough incentive to actually use most of them, because they were either too limited or came with weird drawbacks that made them not worth it. I found myself wishing they were getting stronger over time more often instead.
Outside of battle, besides the question I had already asked and some of the things you already fixed (like healing right at the end), I think things were all pretty good. My biggest critique would just be that the overworld art could be improved to be more in line with the gorgeous combat art, but it looks totally fine for a jam game.
But yeah, overall, this is an awesome game and I was really impressed. Clearly a lot of hardwork was put into it and it turned out as something really cool. If you made this a retail game, I'd pay money for it!