Thank you for your review! 😊
Yes, the enemies around her get removed when the switch happens. This is to prevent going into a large crowd of enemies, from which it is not possible to escape, just before the switch, and winning that way. Of course it is still possible to set things up in a way that is advantageous for you, when on the other side!
I kind of like the imbalance between the two sides, as it makes for a sort of dynamic difficulty - if you want a challenge, you can try to win as the witch, or if you want things to be a little easier, you can win as the demon lord.