I love the atmosphere, background music and the storybuilding. The art style reminds me of old games I used to play on the internet as a kid. I think the idea is solid but there isn't much variety in the gameplay. If you added more to the gameplay (exploring rooms, breaks between fights, animations and sound effects, more options to the choices), it could be a really good game. The direction you are going is strong.
Also, the colors might make it a bit hard to read so a different text color would be great. Good luck in the jam :)