This seems to happen if you are using the Itch app. Please try downloading it directly from Itch and unzipping it.
Viewing post in Bug Report Full Release 1.1.0.0 - Bathhouse Update
Ok, that seems to work fine with my old 1.0.3 saves still intact, if I launch the exe directly outside the app.
I'm not 100% sure if its the right version though; was the invisible wall bug in Moorsh Grotto supposed to be fixed in this update? Its still there when I reload the save, unless I need to restart a new game completely?