This update make this a legit good horror game. The sfx are good and creepy enough to get a good reaction from me for the jumpscare. The shader (while maybe a bit strong) makes the setting feel nice and retro. The background effects take me back to playing slender for the first time.
I do agree that the monster is a bit easy to avoid. Maybe add some kind of rubberbanding logic? Otherwise, this feels like something I would play with my brother over a discord call.