Hi there. I totally aggree with you on the demo. It was a pleasure to play it through, however, I played it with a PS4 controller as well, and I also find this bug you just mentioned in point 2. I could work around it this way: I added every necessary item, then pressed "Square" then jumped to the list where it shows the craftable items and back to the forging, and it played the animation and the item was ready. Furthermore, after beating Henriette, I tried to forge a Dagger, and I stuck on the item finished screen. I tried several times, and I couldnt exit this window anyhow. I even tried it with keyboard, but that didn't work either. My only way out was Alt + F4.
Thanks anyway for making this demo playable. I enjoyed every moment and it blasted me with tons of inspiration. Keep up the good work :)