Hello, played it for 45 minutes. Looks nice and atmospheric despite the low fidelity, and I didn't notice any major bugs. Dialogue system worked pretty well for the most part - I especially like the little encyclopedia hyperlinks to tell you about the world you're in.
Stuff I noticed:
Tiny thing, but you'll want to name your folder something like "Project Arcane" instead of just a version number. It's easy to lose it if you just extract it in a folder with a bunch of other stuff.
Pressing enter when entering a name for your save should really count as pressing continue, instead of adding a line break.
You really stick to stuff. Like if you jump into a wall, you don't fall down until you let go of the movement key. Letting you slide along the walls more easily would feel much better I think.
Dialogue choices seem to pop up before the text I'm supposed to respond to has finished displaying. I feel like it'd be good to display the dialogue I'm responding to as I consider my options, anyway, rather than in sequence.
I beat the sign puzzle by accident and I'm not sure how I was supposed to work things out properly. Kind of annoying that the top sign says "downtown" but that's not an option you can select - like how am I supposed to know Main Street counts as downtown but not the Dockside?
I hope that sign puzzle was the one thing you were supposed to be able to solve in the demo, cuz in the junkyard I can't even figure out what the question is after going through the whole place two or three times.
Anyway, my brainlet inability to solve puzzles aside, game seems promising; just needs to work out some of the kinks and burrs and then it should be smooth sailing (for people who don't suck at puzzles, anyway).