When I move that vertical block the angle of the ray changes so the reflected arrives a bit left or a bit right of the small scarab, but the rays emitted from it don't reflect the incoming ray's movement.
At some point I managed to get the whole level into some "semi-stable" state where it was flipping between the obstacles on and off and the ray could reach the target but not for a sufficient time to trigger the level finished... If it had been the intended solution I guess it would actually have registered the ray so I suppose that was just some edge case...
At this point it would actually be nice if there was some indication which of the levels one reached... ;)
Dispite the technical issues in getting the game running on my system (and some of them are still there, some of the VOs in the intro did not play), I love it. Especially that multi-refraction element is really cool!