Welp, I already downloaded the new update, and sadly yeah it's persistent, you did try. I guess all I can do, is to show how persistent the bug is on my side, or the technical showcase. It's a shame I'll never complete the game. I would watch a playthrough or the playthrough you gave instead, but I refuse.
I did progress, but there's no way for me to continue, especially with the next street part, and even just entering the next mirror bugs out.
All I can say, the bug seems to be the drowning/bubbles. I can't say for sure if the bug was also in during the third walk/mirror. It really hurts for me to say this, and I don't want to, and it's not a good fix/thing either, since I know you want to convey something on those parts, but like making the fading out long instead or remove the animation, or have a skip instead in the animation (tho I'm unsure if that's possible).. I'm unsure if you'll still try, but it's understandable if not, just of course don't push too hard about it, and besides there were others who were able to play the game so it might not matter for me, as the game is still good, just I cannot finish it.
Welp, again, I'm really sorry so much. Maybe I'll give it another chance, if there will be still update on this one. Also don't mind whatever I say on some parts, like I say this is a game jam submission, where that's I whoops, my bad. I probably misremember that for another game of yours, that I was successfully able to LP.