It's impressive you made this in just one week. I always loved Labyrinth and I still play it with my family.
I believe softlocks would happen less often if you just forced corner paths to not face outwards and have then not have keys and gates. I miss the ability to rotate tiles before you insert them into the dungeon. Tile clarity would improve if there was space or edges between them like in your main gif.
I found the game far too easy, but not every game needs to be hard. A larger labyrinth like in the original game would be better.
I think wall destroying is not needed. I think it would make for more interesting puzzles if monsters were not moving and players would need to play around building alternative paths or pay with their hearts to go through enemies.