Hey, thanks for playing and leaving feedback!
If you downloaded the latest build (0.14.7 i think) you didn't even get the worst lag. Theres still lag when items spawn for the first time and a few other things, like you said its an instancing issue. Already got something in the works for the items, the rest i need to figure out as i go.
Anyhow, enemy AI really needs some work, archers just stand still instead of going around walls if they block their line of sight to shoot you. Since i am currently working on making companions more useful, the same problem will apply to them, so i want to address that.
Pathfinding for the player im not sure what exact cases you mean. Theres the issue in the starting area where collisions just block you, because the navmesh wasnt updated for these obstacles, so thats expected. Other than that im only aware of the fact, that the pathing feels a bit off walking from tile to tile, you still get to the destination, but its not always a straight from starting position to the cursor.
Drop rates and difficulty in general will change a lot soon. Companions will get skills and abilities that makes you way more flexible and your party more durable/stronger. That will need a lot of playtesting to find a sweet spot of course.
Hope i can iron out those freezes and lags until the next game jam in may!