Thank you for playing and for the feedback :)
Though I feel like I should explain some things .....
1) It's a known bug lol. I've even mentioned on the game's page that it will happen
2) It's just an indicator for low stamina. Your stamina will regain very slowly in wizard form but the red indicator just means you have low stamina and can't attack. You have to move around in bird form for it to regain quickly
3) I'm not sure why everyone is saying that they wish they could attack enemies above or below them because you can. The area of your sword attack covers the point right above and below you as well