(NOTE FOR PLAYERS: I'll try to keep this review spoiler-free but not sure I'll manage, so maybe play it first before reading???? But for an overall opinion: it's excellent and probably will be a masterpiece when the game is fully done, just make sure to read the trigger warnings if necessary)
Okay, I finally played Arc 3 and can leave a comment about everything made so far! The reactions I had at the end of each arc:
Arc 1: oh, I wish we got a happier ending after everything we went through...
(then, realising the concept before starting arc 2): oh, now we'll get happy endings!
Arc 2: well, nope but... something bigger is going on, just go with the game
Arc 3: what-the-hell?????
Okay, let's provide a more-refined account of what I think of your game!
The first point I'd like to mention are the characters: they torment me! They make me feel a million of different things, going from love to horror. You managed to give them a lot of nuances, and in that regard, I'm really excited to see Arc 4 to see Gidget, especially considering what is suggested during arc 3. Same goes with Genzou: I loved him in arc 2 and had more twisted feelings about him in arc 3 (although I called out his attitude towards Orlam as soon as I started arc 1). Orlam really moved me during the "real-world" phase of arc 3 and horrified me at all the other moments. Regarding Bucks, we still know so little about her, but I can't help theorising about her. I also like Iggy's evolution, and really curious what arc 4 is going to be like. So, you really made a great job of the characters.
Also, the story, so far, is good. The lack of control we have over it is frustrating, but this is inteded frustration, which shows the struggles and the pains of fixing problems or issues that have been going on for years. Also, the fact that we don't really have a choice and that, no matter what, we face death, reminds me of Greek tragedies' concept of fatum, and I'm really into... well, French classical tragedy, but it is inspired for Greek tragedy, so... in short, that's really my type of stuff and I loved it.
The horror was a nice touch too. The way childhood is twisted by desires that come later... I think, the game really offers a real reflexion on sexuality, and you're clearly not kidding when you call it an "asexual horror game". It is really horrifying, and as an ace person, I was really disgusted and unsettled at some points (inn scene, Arc 2...). I really mean it: in terms of writing, you tackle the topic of sexuality in a way only an asexual person could and that really got me in.
Of course, the art is amazing, at the same time cute and unsettling, which is perfect for a game about a twister wonderland.
So far, I'm loving it and really got into the game! Excited to see what's next!
(Also, I think you posted a tweet about wheter letting the player choose which arc to play or making them play in the inteded order: I really think the evolution of Iggy's character would be less striking if the game weren't played in the inteded order, if you need some feedback on that).