I got to round 4.
I'm unclear on why would you use cover. I feel like the demo's difficulty didn't leave you with no choice but to dodge. Also, do you not reset the health between rounds because that's how the actual game will be? Aren't you worried about soft-locking the player? Because once you get hit a bit, it's better to just die than proceed to the next round with barely any health.
Reloading makes you unable to stop aiming. I don't think is necesarily a bad decision, like, it's something else you have to keep in mind. But like, in round 3, dodging the witch, plus dodgin the projectiles of the dunces, plus making sure to step back when the dunces got too close, pesonally left me with no more mental power to keep track of ammo, so I generally got smoked. I got to round 4 with 6 health.
An idea would be to reload from neutral. I think that would have made it easier for me, I'd just try to not exceed the bullet limit by feeling it out, go back to moving mode to dodge and reloaded when it was most convenient. I don't know. There're lots of things you could try with the reload system.
I never played the megaman games, and to honest I'm not entirely sold on the battle system itself. But the art does draw my attention.