The intro is pretty good.
I think a good intro should leave you with questions that draw your interest further into the game. I think you leave an OK plot question "what happens to bad art when it is sent to the trash lands?" but as far as themes go, there's nothing. You say in the intro "these flawed sketches hold something precious: the courage to create". instead i think you could be more vague about what value mediocre art has, and then explain all of the ways mediocre art has value through gameplay and story. in other words, the intro should open with the question: what value is there to be found in bad art?"
I think the shots of your character laying in the garbage heap are cut a little too long. after going through the cool portal, i dont think you should have to wait too long to start playing. I think you should give a 2nd pass to the introduction of the first 2 named characters, because their appearances are a little boring obviously i think you should give them more personality immediately. i'm not sure what form that could take.
you should add some direct feedback that you can't interact with something because you are in combat. (maybe a ❌ over the interact symbol?), and also some sort of sound effect when you fail to interact with something because you are in combat
you should add more direct feedback everywhere in combat. SOME audio and visual component to every action at minimum. I think this is important to do right now so the game feels better for playtesters. you will get more positive feedback on the boring parts of your game so people will get further in and provide you feedback about the more important later parts of the game. find some sort of identity with the combat so it feels fun to just wail on a basic enemy. I often experienced an issue where after hitting an enemy a bunch, it would get launched back and land on some geometry and get stuck. this happened next to the bed and NPC at the start of the game, and prevented me from interacting with them at all
I think the visuals of your game could be quickly improved with a little more work on the visuals of the game. I don't mean remaking assets to adjust the art style or anything like that. but the intro area for example is very bright and lacking in contrast. postprocessing can help a lot with this.