Thanks for playing!
First off, you weren't supposed to lose. I mean, I programmed the battle with the player lossing in mind, but you can win. Although the story progresses the same way even if you manage to beat them. Also, yes, you weren't supposed to be able to skip the Demon lord. Thanks to you, that bug is now fixed.
I need to ask, vibrant how? I just really don't get what you mean. On the other side, a little fun fact: the music on the plaza (map with the airship) is actually VX Ace's Town five with a little pitch adjustment, courtesy of MZ's music-picking settings. Another fun fact, you are the first person who liked Harold telling them "Hey, not this way!" on almost every map.
I can't tell you just how thankfull I am you told me the Demon Lord reappears. That is definitely not supposed to happen.
Finally, yes, I realized that bug only when reading the comments, so the "final" version still has it. Right now, I'm working on fixing all the bugs people have found and getting rid of all those typos only my family noticed. I'll upload a 0.3 version once the jam is over and I'm done fixing everything.
Thanks for all the feedback!