An amazing demo so far. I especially love how in-depth the dialogue is, changing depending on whether certain allies get captured or if you've been hit with the hypnosis effect.
I did notice a few minor issues though - the second dialogue option appears to trigger the same dialogue no matter which option you pick, and you can completely avoid the boss's attacks if you hug the left-most side of the screen (you could probably do this with the right side as well, but the left side also lets you react to any incoming virus drones).
There's also some additional stuff that would be nice to see but isn't strictly necessary - such as some extra dialogue for beating the boss while still under the hypnosis effect, having the effects of the hypnosis debuff become more intense the longer you go without clearing it and/or the more times you get hit with it, and maybe a special 'bad end' sequence if you reach the boss while hypnotized and with both allies captured.
Overall, though, I'm definitely excited to see more of this game and I'd love to see what else you have in store.