Really cool so far, I love the concept and all the juice and little details are a lot better than what the screenshots and the like show. Issues/concerns:
-Music is like 100x quieter than the sfx
-The end-of-battle screen Font is a bit hard to read at small sizes (looks good for title cards etc though)
-Story is kind of a big one, it goes by at a mile a minute and is way too fast, although I'm guessing you were just rushing out a draft to get the demo out quickly? There wouldn't be anything wrong with like, a scene of the main girl daydreaming about her childhood friend and thinking about all the impacts the incident had on their lives, or a long explanation by the cat about how the setting works, etc. Your entire game will go by in 1.5 hours if the final story is paced like the demo.
The gameplay is very interesting, but it's gonna be tough to balance. With randomness(of enemies blocking high or low or whatnot) it becomes a guessing game, and without randomness it becomes square-peg-square-hole simplistic, etc. I do like the way that attacks will miss on enemies who are too high up, and I think chaining/timing combos could be fun, like maybe you could have the randomness stem for how high they fly up when you hit them and whatnot so the timing is always a challenge.
Defensively, it's very hard to react to the attacks without telegraphing or noticeable patterns, in real fighting games most enemy moves aren't reactable and you have to read your opponent, but that's hard to do with a CPU. Could just be a skill issue though, I only had a few minutes experience with fighting the goblins, maybe it is reactable.
Going back to the offence thing, here are some random suggestions:
-Maybe make enemies alternate between crouch/stand blocking at set times (possibly with some randomness) at the start of an attack. There were times when they were crouch blocking but there was no animation to show it, felt kinda BS.
-You could try to make the gameplay center more around combos, with enemies who are heavier/lighter/smaller/larger having properties that make different attacks more effective against each of them? That's one direction you could take things, anyway.
-You could also maybe make a "break" style system where you have to inflict posture damage for a while before they juggle, maybe with stuff like weaknesses and whatnot making them take more posture damage, then make the juggling way bigger and flashier to compensate.
-Maybe some sort of limit break where it's a normal combo but with slowmo/time stop so you can make it optimal easily? Like a "chain attack" style thing.
Anyway a lot of that are just my random thoughts. I'm a huge fiend for difficulty/complexity and I don't think most players will want the game to be as deep as me, so take it all with a grain of salt. Looking forward to future versions though!