Tried this a bit (three runs just to see what changed between different choices). I'm split. I like the concept and it has potential, but it can also be frustrating.
The first level lets you skip some of the puzzles/minigames, but after that they become mandatory for the most part. And some like the minecart section in the second level feels like I'm fighting against the game engine and wonky controls constantly. Another example would be the Gameover chase by the zombie. Could really benefit from anti-frustration features if these minigames and puzzles are something you want to keep doing.
The second point of frustration is resources and resource spiraling. The game pretty actively punishes you for any unnecessary fights. I don't mind and actually think tying level progression to story beats is a nice way to go about things. It's certainly better than just level grinding and then finding out you overdid things and now the boss is a joke, or else getting creamed and then being condemned to level grinding for an hour before trying again. However, the relative lack of abundant resources to heal or restore mana, on top of the game's elemental system almost requiring you to invest mana resources to conserve health resources, makes it a bit frustrating and since you get no level progression from fighting there's just not much incentive. First level at least had a merchant to alleviate some of the woes, though it felt like the gold earned from fighting was still less than breaking even most of the time when purchasing consumables to recover from the fights that netted that gold. I got very close to getting soft-locked on the second level my first run by having way too few health/mana resources to progress and no way to aquire more. Losing a run or having to make 15 minute interval separate saves to avoid ruining your run isn't that fun in a game that begs to be replayed by editing sections of the story based on choices.
For that reason, the combat feels like it doesn't have much of an identity. Is this a stealth game where your goal is to avoid every possible enemy and spend your resources wisely? Or is it a combat game that encourages you to play with party composition and its elemental system? The game feels like it's telling me the latter, but it rewards me for playing like the former.