Talks to the Barkeeper for hints on what to do next.
There will also be new events if you forfeit te battle against the demoness.
Let a day pass. Try defeating monsters in new areas.
Try raising your affinity with other characters.
If you still cannot proceed, I will need to investigate the issue, as it may be a bug. Contact me at our main website at https://townofmagic.com/contact/ with a valid email so I can contact you.