I think, for the sake of the jam entry, you definitely should've skipped straight to the lesbianism. This type fantasy isn't my usual genre, I admit, so I found myself a bit uninterested in the setup and fairy party. Not having a strong idea of where the yuri direction was going to go or come from definitely hurt my interest, a bit.
I think the party is also a little bit underutilised, as well. Parties are a really strong place to introduce a variety of characters, and while characters were introduced, I was given little insight into their personalities or why I should care about them. I don't know anything about Roland or Birch, and Dawn is basically just a tittering damsel in distress with nothing else of note going on. The bog king seems to have the most presence, which works since it seems like this is their introduction scene. I think the other characters needed introductions at least as strong as theirs, for me to feel some connection to them.
That said, I think it's a bit of a surprising choice to choose to write a random chapter in the middle of this slow-burn story and not have it even include the toxic yuri. Were you planning on hitting that point, and got got by scope and time?