For being stuck in a loop, the story takes on such a powerful tone which becomes an immediate highlight for me - I really like how the story progresses with gradual realization for the player in terms of what was happening as the loops went on.
However, the movement feels incredibly slow across the game, and I would've liked to have seen more NPC characters to speak to (especially those people walking down the street, and further dialogue for the old man as the loops continue). One other small thing I would've done is add a small icon above the player's head (or the corner of the screen) indicating that the object/NPC is interactable when you are in their range. I find myself going underneath a lot of the buildings, and some of the level design does feel enlarged compared to others (houses and the ground) but the pixel art done here is very good in terms of graphical style.
Overall, I did like this playing this short game, especially when it comes to the story. If you are planning to expand on this game, I think it will definitely be a great one.