Thanks for the feedback and pointers.
I played Paragon a ton as Sparrow and wanted something to make like a target shooter. With the 3rd-person perspective you have the arrow coming from the character, while you aim with the reticle. I did look at Horizon Zero Dawn and figured that they lerp the arrow pretty fast to the aim direction of the player reticle - and I tried to implement it like this.
My intention with the enemies was to spawn some sort of hazard when they died. And I wanted like bosses where they were invulnerable where you need to collect certain orb colors. In the mean time I landed on this. I see that it is annoying that enemies block hits.
My twist with the theme was that non-killed targets over time will die and transform into an enemy or will spawn as a hazard which the player has to dodge.
Too bad the game was laggy for you. I got some digging to do how to optimize Unreal Engine better, it seems the high quality assets packs from Epic really do take a toll on performance and size of the game.
Thanks again for playing!