Thanks for the feedback, and thanks for playing.
Yes, I am well aware that the enemy and loot detection is a bit hokey at the moment. I am using a single raycast, which is why it is too finicky just now.
Just to say, when you attack an enemy, and vice versa, there is a chance to hit, rather than it being automatic. This will become more obvious when the upgrade mechanic is implemented, as some of the upgrades will affect the hit chances.
Maybe I should just add a little floating "hit" or "miss" box when making an attack. Hmmm. Thanks for making me think about this.