A very simple thing you could add that gives the game a dynamic and lively feeling is slooowly increasing the speed of the music over time. You can do that in just a few lines of code in Godot, and with the simple background music, it would work very well in adding intensity.
I found it a bit odd that the player wasn't affected by the tentacles at all, but that could be a neat additional mechanic, forcing the player to run around to block enemies as well.
Really liked the campfire dimming effect. Great entry! 🎉