Enjoyable demo! I liked it, there are definitely some high points, the graphics are so good and make me want to get lost in this world, the UI as well is very nice and just as a fan of soulslike genre, I can see some similarities. The gameplay reminded me a bit of the combat part of for example Tunic, which is great. I also quite liked the particle effects and the sounds used in the game, they all fit together nicely for cool audiovisual experience.
There are obviously some unpolished things, so I won't feedback all of it, but one thing that I'd say requires further consideration are the fog gates or just combat areas. When you compare it to for example Dark Souls, the games while still being linear, have a bit of that "choose your battles" strategy, where you can just run past enemies if you feel there is no point in fighting them(either they are too strong or rewards are too small). And fog gates there are mostly for bosses, important fights where you go in and can't actually leave. Using it for all encounters I feel makes for a bit more frustrating experience, I also worked on a game where something similar was tried and the idea wasn't really well received by players. Plus it results in some bugs, like for example when I was playing, twice a ladybug got stuck outside the fog gate, making it impossible to progress and I had to restart. That could be avoided by just not having the fog there.
Also something that may just not be implemented yet, but cleansing enemies doesn't really give any gameplay value. From watching on the camp sessions I know I am a shaman, cleansing the nature, but even if it would be fully explained in game, I don't know if that would be enough of a motivation for me as a player. Maybe cleansing could heal you? Seeing as there are no healing items in the game, only checkpoints.
Lastly the combat, it is fun, if a bit slow though that works and I dig the pattern of avoiding, blocking and then attacking from side. The combat loop is fun, but as mozokevgen already said, the knockback makes for some feels bad moments, where I can't really combo on enemies. I think just removing knockback would be better, and would make more sense as all enemies are bigger than our little lizard, so it gives more unstoppable persistent force vs unmovable object feel, that is already kind of present with the visual design. Also can't really pinpoint why but combat either feels a bit unfair or way too easy, sometimes I just breeze through the bugs without issue and sometimes they stunlock me to death.
To summarise, there are obviously some areas that need work, but it's understandable for the circumstances. I really enjoy the demo though, I can see myself playing this even now for fun, and definitely if it would get more polished! The game is on a good path and I think it's very impressive work for the camp period. The level design, art and just overall the whole experience is very solid, and things I pointed out are really just a bit of a nitpicking :d Great job!