This game needs work. I may not be the best person to judge how scary it is, because I play a lot of horror in search of things to actually scare me (of which there are few), but to me this game isn't even remotely scary in its current state. To be fair though, I also didn't get very far into it because it seemed to not be functioning correctly.
I think there's plenty that could be done to make this into a unique horror experience, but where it sits right now is not it. You need to expand on the atmosphere to make it more foreboding, and increase the level of tension, if you want to really nail down the horror genre. Darkness doesn't equal scary. Some great examples, which I've played before, on setting up tension are Amnesia: Dark Descent (Frictional Games), You Must (Emika), and Ad Infinitum (Nacon). Amnesia and Ad Infinitum are a bit longer, but You Must is about a two to three hour play if that's more your speed. Generally speaking though building atmosphere has to do with slowly ramping up the types of events a player is encountering, and making them worried that they cannot go back, that they're stuck, that something could actually be around the next corner. Since you're playing with the idea of an intruder, you have opportunities for that.
Thusly, make this a bit brighter. I feel like you can either have the graininess of an old film movie, or you can have it be fairly dark, but both is very difficult on the eyes. Instead of feeling scary or foreboding, it just felt frustrating. Having the house change layout each time does not help at all. It makes navigation more difficult than it otherwise would be. In a similar vein, why is our character so low to the ground?
In the menu, please, please, PLEASE add an option to turn off head bob. Head bob, especially in darker environments, makes motion sickness so bad for anyone sensitive to it, like myself. Almost all horror gamers I hang with too, motion sensitive or not, will turn off head bob. It's the typical preference.
Speaking of menus, they are very small and the font is not terribly legible. The font will probably be fine if the menu is made larger, which I'd advise because you have so much space available to you for it. You can still have it be with a TV screen border, but make it bigger. For one of the menus too, the scroll would not function for me. I think that's probably a bug.
Please rethink the text flying at you as an explanation before it shows up as a static image, maybe make it linear? It was very fast, difficult to read, and a bit triggering to my barely-neurospicy brain so I can only imagine how it'd be to someone who is more neurospicy. And in that same vein, we really need something of a tutorial to know how the controls work. It'd also be good if the selection tool and interact tool were the same key, not "F" for on the TV and then "E" for the game because "F" there is for the flashlight.
Game play itself, I don't get the connection between the TV and the intruder. I also couldn't complete any of the objectives because I either couldn't reach the final phone, or I couldn't pick up the object needed. Definitely some bugs to work out there. From what I could play, there weren't any jumpscares or anything, just trying to follow sounds and hunt down objects. I don't think that's the environment you're aiming for.
Please let us have use of the "ESC" key to pause or return to the main menu. The only way to exit the game is to alt+tab out and close from there presently.
Overall it needs work. You need to tie in the TV to the intruder for the game, troubleshoot some bugs, and adjust the visuals as the main things to start with in my opinion. Then from there environment and tension building, and finally timing some appropriate jump scares (if that's something you're into).
My VOD with your game bookmarked for a timestamp is here: