I don't understand the combat. Is it an auto battler? Should I only care about load out? Or should I actually do something? I get whacked by the first encounter in the game. :(
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Sorry to hear you're having trouble!
Yes it's an autobattler so you don't need to do anything for combat. At the start, just stay in that little section you're in and take one fight at a time, there is one fight directly to the left of you and there's a healing lamp to the front-right.
As you get a little bit of gear, the fights get alot easier, if you're willing to have another go or two, I promise it gets much much easier. Additionally the clicker mechanic gives you upgrades that makes you stronger in the autobattler portion.
I hope things get easier for you if you're willing to give it another go.