I dont know if ive simply missed something or has soft locked myself, but im stuck at level 1 after talking to every npc and tried to kill the spider boss. i would greatly apreciate some help about this. thank yo
You can't actually level up! The level system is just a ruse mechanic to put Luna into lewd situations later. The only way to get stronger is to buy better equipment, or have Pudding train Luna to increase her stats.
That said, you can still progress the game after losing to the boss! Fighting is really optional.