I always dig a good beat 'em up; although, for some reason, I play them very rarely. This is sort of inspiring me to have a go at making one...
I like the idea of a single, simple little fight that has seems to have some big story implications. It's a good idea for a jam, and seems like it could be a good jumping off point for something bigger. That said, the mechanics and aesthetics here would likely benefit from some more polish. Something like off about the movement, like I kept moving after letting go of the key, and it was difficult to tell both when my attacks and when the enemies attacks were landing; some feedback would easily fix this. The game is also sort of disjointed visually; if you were to continue working on this, I would suggest maybe sourcing art all from the same place, so you have things that all feel good together.
I'd be interested to see if you continue with this what it becomes! Like I said, I could use a good beat 'em up!