This was a cool entry. It took me longer than I think it should have to figure out the lantern mechanic as the explanation was kinda vague in-game before the update, but I appreciate wanting the player to figure some things out on their own. Even after the update it's still not 100% explicitly stated, but I like that it doesn't break immersion and the implications are a lot stronger and clearer now (unless that explanation from Azariah was there originally and I just missed it somehow). I especially liked how you only take mental damage when the enemy sprites are in your lantern's vignette, which makes perfect sense for a world with Lovecraft lore! And it created an interesting dilemma to try and figure out if taking another step with the lantern on was worth the risk, not knowing if another enemy sprite would hurt my sanity.
I really liked the banter and teasing between Younah and Fran, it was cute and made me laugh a few times! Character art looks a lot more polished now after the update, and I enjoyed the enemy designs! As for the music, I thought it was subtle but well-implemented. My favourite track was the one at the very beginning... I do love a good drone.
My only big criticism is that it was unclear to me as to where to go after talking to Azariah after he saves you (unless I missed something in the dialogue?), so I wandered for a bit wondering what to do next.
Great work! And I agree with Younah, Genesis IS hilarious! XD