So I got the game working and started running around my C: drive, just like I'd imagined - it was great! I even found a gigantic plant enemy in my SteamLibrary folder... which killed me instantly... whoops.
Anyway, when I went back to character select I saw that character was now a Skull icon, so I tried dragging it onto the "Repair" wrench button I had seen earlier - I figured this might be a way to revive the character. Then the app crashed, turning into a blank white screen with just the music continuing to play. Am I using the feature correctly?