Update is on its way! :D Ive reduced the enemy damage to the player. Yeah there is a trick, you gotta time the attack, and move back, because the melee enemies will instantly hurt you when near.
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Just managed to find the time to play the update! Still brutally difficult, but I DID manage to get the axe and then the shotgun/musket and make it to the end of the level. Was a lot of fun, and I the difficulty forced me to sometimes run away and find health or ammo at certain points so I could come back and finish off certain enemies (particularly those bone monsters). Awesome stuff!