I like it! It’s fairly simple in terms of gameplay, but the work on the art and sound is just magnificent. Visually, for some reason it reminded me of Diablo II. The game creates an oppressive atmosphere where you’re constantly expecting a threat. The fading torches are an excellent idea. The jumpscare is unexpected and works because of that — especially since it has great buildup: you’re peering into the darkness to spot the threat, but the threat has already reached you.
As for downsides, I’d mention the stamina indicator — initially I mistook that screen for a loading screen and was very surprised it was even there. But that “loading screen” ended with a jumpscare and me losing ;-). I also felt that it’s too hard to spot the threat once too many torches have gone out, though I fully accept that might have been the intention — that you should spend resources not only on warding off enemies, but also on checking whether they’re there.
Also, I think it would be nice to make the stamina cost for keeping the light on smaller, but in return add a minimum time the light stays active. This would improve the visuals — warding off enemies with a flash that lasts just a couple of frames looks unimpressive and a bit odd, even though that behavior seems to be the best tactic.