Was good fun, I played with a controller and did most of the content. The movement feels alright, but the combat is stiff. Maybe allow attacking while moving? I also didn't like the contact damage, for whatever reason it just doesn't feel right for a game like this. The visuals look nice as usual and I had no issues with the other-world filter. The items are fun to mess with, but I'm not a fan of having one big list to cycle through, perhaps have a zelda-like equip-4-at-a-time system? The camera currently coils to not go through wall geometry, but I think for this style of game(without ceilings), it makes way more sense to just have the camera float above the player so it doesn't jarringly move if it intersects with a wall. Though I may be wrong and doing so would cause more issues than I think, so whatever.
Small glitch: I got stuck repeating the first hologram's conversation and had to ALT+F4 to leave. No matter which option I chose at the end (the 'repeat this again? vs 'thank you' options), it would repeat the conversation. The culprit may be the 'selection made in index: ...' It keeps on counting up, so maybe you have a switch case and it defaults to the 'repeat conversation' choice?
Good job on the demo, hope to see you improve upon it.