in the current version losing is the only way to fully heal, but the vending machines sell Res restoring items (though i mightve added that after the demo was released)
i do expect people to do their best to avoid battles since theres no actual level based progression yet. in my speedrun attempt i got to the sewer entrance in 9:30 but beating the boss left me on low health so i lost to an enemy after that
the animations are made with live2d but i had to export them as frames, if you think theyre smooth its cause your computer is good enough to not lag as new pictures are loaded each frame