The baseline systems are, I would say, quite engaging. I do feel that the game needs polished a lot overall, though!
Parrying feels... Overall useless. If anything, in a lot of situations it's actively detrimental (for example, with Knights; blocking one puts them in precisely the right position to counterattack, whereas parrying leaves them in position to attack again).
It feels like parrying is the worst of your defensive options, behind blocking and... moving normally.
The shop system I assume is designed for something much larger, since in the 'time trial'-esque formats of the two main gamemodes, all it really serves to do is to give the player a cooler sword before you kill the Queen. The feeling of progression would be perhaps better in, as some others suggested, an endless mode of sorts.
Most of my issues, I'd say, are to do with the parrying mechanic. In soulslikes, parrying is usually a high-risk, high-reward way to punish an attack; getting the timing just right to deal heavy damage or one shot most enemies. In this game, it accomplishes being high-risk, but feels overall unintuitive and unrewarding.
At best, parrying tends to just accomplish the same thing as blocking, but with far more risk.
Specifically, the way that parrying works--being bound to the same button as attacking and only being possible at all JUST before you're hit--feels unsatisfying to do and frustrating to fail, given that anything outside of the window just leads to making a full swing and eating a full hit.
I feel that the system could be worked on a lot more, given how much the game seems to promote it.
Other than that, I do like the demo! It's a promising enough proof of concept, even if there's not too much to chew on just yet.