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I'm a bit confused, how tavern talk differs from dreamwalker?

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The story is set 36 years before the events of Tavern Talk. There are new characters and we improved the drink mixing and quest making mechanics to have a dash of a challenge. You can play both demos first here on itch. 

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To be a bit more precise: Dreamwalker is a standalone prequel to Tavern Talk with many improvements and, of course, a new setting, and an entirely new story with around 16 hours on your first playthrough with multiple endings and narrative branching on top.

If you want to, you could call it Tavern Talk 2  - and maybe we should have done that :D

personally I think the name dreamwalker is much more catching an interesting than just Tavern Talk 2

yeah it was once thought as a spin-off rather than a part 2 but eventually evolved into full blown title. Hence the "Tavern Talk Stories" bit. Some think it's a DLC. So we're now wondering to rename it to "Tavern Talk 2: Dreamwalker" to make that clearer. It's difficult :D