Wow, this is a very interesting project. You have an amazing talent for creating atmosphere. The sound, lighting, and structure of the place creates a very unique and very intriguing feeling. I am absolutely compelled to learn more about this world, and the events happening. There's something very obtuse about the entire thing which I love... that goes so hard against the grain of modern game design, but finds an element of mystery in doing so.
When it comes to the nuts and bolts though, I think there are a few things that could be improved a bit. The walking feels good, no issues there. But it's a bit finnicky to align myself properly with items so that I can interact with them. I'm not sure the reason that left/right movement is disabled in first person, but I assume there is a good one. Perhaps allowing just a small amount would be good? If I walk to a switch or something I want to interact with, and I'm slightly misaligned, I have to go back, fiddle around, try again, etc.. It doesn't feel very good to do that, and works against all the atmosphere, in my opinion. The distance in which you can interact could stand to be a little more generous too.
The other thing I wonder, is whether the game would benefit from a trust building moment early on. That is, very early giving the player one moment of clarity that they did something "right". That would help them trust the game knows what it's doing, that they are doing what they should be doing, etc.. I don't personally know how this would work, or would affect what you are going for, but I did find myself getting a little lost and wondering if there was more to the game, or if that was all. Looking at the screenshots, I see the guy with glasses on, blood on the floor, drinking water, which I wasn't able to do. I was taking pictures, putting on the glove, flipping switches, but wasn't able to leave the apartment, find the glasses, or make any other progress.
How much of that is due to the format, being in a demo day with 59 other games. It's not the ideal format for a game that is asking something of you, like this game is doing.