I know you changed a lot from the last demo (with the state machine and animations) but it seems pretty similar to the last demo for me just more polished. I don't think I saw the enemies reacting to each others' attacks like in the last demo. Nice different footstep sounds for different floor types.
Here are some things I noticed while playing that may need some fixing up:
1. Same bug from before with controls menu not showing up correctly when first brought up but working second time (was using controller).
2. NPC's still break when trying to lead them off ledge (in library). They'll stop at the ledge and then never attack again afterwards (only blocking).
3. Noticed some odd occlusion culling happening on the first door at certain angles.
4. No water...
Still looking forward to the demo where we get to see the water and CRT filter you worked on.