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After 3 attempts, I returned peace to the galaxy! Don't know if it's a feature or a bug, but my weapons kept their upgrades on the following playthroughs :)

(+1)

Yeah that's a bug. Arguably the balance is a bit too hard so maybe it accidentally balances the game? Thanks for playing!

Honestly, I think it does. Maybe you could officially have 3 "lives" within which the player retains weapons progress, and after which it full restarts?