First, thank you for the thoughtful feedback.
We definitely had room to better introduce the battle mechanics in the game. This is something we aim to improve in the full release.
You bring up several good points with the combat itself. I totally agree that higher stacks of residue not applying more capture damage is confusing. Many of these mechanics were developed quickly, and I think you spotted a few loose ends :D
Sorting the notes is an easy win, good idea.
There are a few different viable strategies for the dog. One approach I know works is using Purify, Whirlwind, and then Dig. Purify heals over time, whirlwind will apply additional stacks of air residue over time, and dig deals high earth damage to apply the resonance.
You have given loads of helpful feedback here, thank you.