So, because I'm an obsessive madwoman, I posted another update (3.1.3) in response to this feedback. I changed the core mechanic to kind of combine these two versions, but maybe more importantly, this helped me clarify some things about defining stakes, assessing narrative positioning, and the kind of experience I want the GM to have when adjudicating things at the table.
I also wrote some more thoughts down in a Devlog if you're interested!
https://goblin-door-games.itch.io/before-the-worms/devlog/1374867/squishy-meat-b...