The game was recently updated a few months ago to v7.06 so no, not dead, not yet. v7.06 was a hotfix for v7.05. To fix the very issue you are having. However, v7.06+ has not yet been released to itch.io users. 
So technically you have reached the end of the game for your current version. Congratz.

!!!SPOILERS!!!: If you haven't already, there was a third party member added to the game in v7 that you can get. Shayla, for even more story. Unfortunately, to do her questline you'd probably have to restart. Because you have to get the quest from the witch after you visit the village in the south and sleep overnight there for the first time. You can try talking to the witch with your current progress about becoming her apprentice, but I wasn't able to, until I restarted. The questline is to teach Kara how to become a witch and learn how to cast healing. Usually bugs out otherwise if started too late in the story... but at least you'd have more playability due to the game being rather short at this time. It also opens up a bit more content such as spell crafting through attunement if you play your cards right... 

However, Shayla is killable when you first meet her forever preventing her from joining. So you must retreat from the 1st battle with her. The Red Maiden (Blood Red Fey Fairy Lady) to the East of the world map may know how to save her after the encounter ;) 

Save your game often and in separate slots as there are many bugs in v7.05 that may "break the questline" since it was recently added. I recommend doing this questline though because it is a big part of the current end game... 

!!!END OF  SPOILERS!!!

I don't know why they haven't updated the broken version here on itch with the game breaking bugs... But at least it's a good game preview if  you play all your cards right... I suggest trying to contact the dev on Discord through their Patron for more details. They are active on Discord and have recently posted there on Jun 19th. but you may have to be a Patron to see it. I don't know. The game just started to get good and their Patron is picking up due to it. So no it's not dead and it's still getting updated... somewhere... 

- "hope this helps."