To be fair I don't even know if it's possible to have a "right" difficulty especially when people's skill levels are all over the place. I found that easier games tend to work better so people don't feel gatekept from the whole experience and it's a huge gamble to make it possible for a player to lose while you have a 1 hour time limit for gameplay experience
Most horror games I know do not feature combat at all, and effective horrors I know that do feature combat make them painfully obvious they're undefeatable by making them immune to damage.