Yeah it is tied to the bed, when you sleep I made it so the player would get +1000 HP and MP but it would cap out at the max and then go back to 20 and 2. But when you level up it changed the cap to nothing because I forgot to add it, so you would just gain an infinite amount of HP and MP. I could tie skills to level ups, I was maybe thinking you could just learn the skills through NPCs or books but I could also add some through leveling.
I also just fixed the bugs you mentioned in the last paragraph! The western hall of the apartments is a placeholder, I plan on making it a bigger puzzle (just adding this part cuz I saw you mention it earlier) I kinda just wanted something for the player to do for some loot.