Yume Nikki-style fangame? You got mah interest bud
I like how you went for a more comprehensive storyline compared to the usual Yume Nikki cryptic style, but I feel like you could have explored it even further. To be specific, I never really understood what Reimu's fears corresponding to each area was. Even adding a little bit of dialogue between each area event would have helped. For example: What did the hands in the first area represent? How did Reimu feel when she lit up the lamps? Why do the rabbits hurt Reimu so badly? And finally, what exactly did Doremy do to dispel the fears?
The gameplay is also nice and sandbox-like despite the clear progression. I like how Doremy and Reimu hint at how far you've gone in the fetch quests in the 2nd and 3rd areas, it made me feel like I was actually getting close to the goal and not just wandering hopelessly not knowing what else I should do.
The 3rd area has a glaring issue in its pacing, though. Firstly, are way too few spirits for the size of the area., I suggest either increasing the number (4 should be fine) or having the area be lit via a limited-use skill. I also would recommend making the spirits & talismans move Very Little (or even not at all), since they move so much that its inevitable they won't be in the exact spots in the game guide. (I found talisman 3 in the middle of the area, when it was signified to be in the bottom left.)
Last but not least, I love the music. It's the best part of the game and the musician really captured that atmospheric, dreamike Yume Nikki feeling well.
For a game jam entry though, this is a solid work. Good job!