Ah, YES! This was the one I was looking forward to playing the most. No Game Maker. No Unity. No Godot. No Pico-8. Just raw effort and it definitely shows. It has a bit of an NES feel to it, though it reminds me more of PC Engine given the colour setup you use.
Also, as of when I posted this, this game only has 2 ratings. That is criminally underperforming and I find myself disappointed at the jam for everyone not dropping what they are doing and playing this.
Ecaroh pretty much covered what I would have said, though I find your penalties are far from brutal. It's all part of the incentive to stay alive, after all.
As for compatibility, I had zero issues playing this on my Windows 7 base setup.