1. The fact that the game state persists after you die is actually intentional, This makes the game less frustating and kind of realistic.
2. Maybe i should have explained in a better way how the combat works, but that was intentional too. The lantern is just a tool to scare the enemies away while you fix the bulbs.
I didn't have enough time to make a proper tutorial so i apologize if the mechanics were confusing.
Thanks for the feedback!