Really glad to read this — this is exactly the kind of detail that's hard to get without a fresh pair of eyes on the game. Thank you for going through the whole flow and writing it down point by point.
A few things you flagged are already on my list or in progress (spell tooltips, some of the HUD clutter), but the menu polish, the stiffness on turning, and especially the "why am I doing this dungeon" question are really useful — that last one in particular is something I need to solve at the design level, not just patch visually, so it's a great nudge in the right direction.
Quick clarification: the lava-looking area you entered is actually the PvP zone, not a dungeon — it has a kill/death counter and everything. Right now it needs other players to really come alive, so at this stage it's mostly used internally by the team to test and improve PvP balance and some of the online features. That's likely why nothing seemed to happen in there.
The tutorial right now is intentionally very basic — down the line I want to work on it and turn it into something unique, part of the story itself, not just a sequence of instructions. Also sorry about the cursor disappearing on you mid-tutorial — that's a real bug and I'm looking into it.
Really appreciate you taking the time. This kind of feedback is what actually moves the game forward.