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You have no HP throughout the demo except for the last fight btw. Clearly it is meant only to show how things work, the bare concept. The enemies are at level 1 as well. I have no idea why people are judging the difficulty and balance based on this tech demo.

 

Edit: I do think the updated combat can be overwhelming. The demo doesn't explain how it even works. So I understand the frustration. I think this demo was a bad idea. Or badly executed at least.