The loop reminds me of a certain space game. If you approach the game knowing that you’ll have to play through it multiple times then that mechanic is fun. I think an in-game explanation for the loop would be nice (maybe Patchouli cast a last-minute spell?).
The art is very cute, the music is lovely, and the day-night cycle with ambient sounds (bird singing fading into insects and nocturnal birds) is pretty neat. I also had fun figuring out the multiple solutions for the puzzles.
After beating it I wanted to do a run using all items but got softlocked right at the end when I was going to pick up the last item (in the web version). It didn’t happen during normal play though, but I mention it just in case you plan to clean up more possible softlocks later on (edit: I don't think the softlock was related to picking up all items, but rather to trying to swap items / pick an item too quickly)