Appreciate the feedback. The point at which the highest drop off is happening is way before quests are completed or mining has even got the sufficient tools to be exp grinding. I also note that most people don't have the tools or the significant amount of exp by the drop off point either. So while I think what you're describing is a problem, I don't think it's related to this particular issue or post.
Without me knowing where that point is then I can't offer any other suggestions. I know there are a few different kinds of confusing moments in the early game, some of which you have addressed. Some specific quests are confusing and that's frustrating. You get lost a lot. There might also be an early grind problem still. I don't know without knowing more. Could also be the expectation of what the game is not matching what it turns out to be.
BTW thanks for the mob EXP increase. Every bit helps.
[Edit: typo]
If it's the very, very beginning of the game (the 20 minute to 45 minute window) then I would say the game has to be absolutely frictionless (which it isn't) in order for the player to develop an emotional attachment to the character and game experience.
So that means enemies that are easy to kill (bar, say, the Beholder) - I have watched people struggle with the zombies, for example - more equipment and visual customisation options (for some reason customisation speaks to people), and quests that are completely clear as to the objective and what to do to achieve the objective.
Lowering the bandits may have helped. I don't know because I can't tell how easy they are now. Add a couple more caves in the Ettin woods with similar bandit leader type enemies and chests with clothing.