It is a pretty darn good demo.
It has Groves charming visuals and the character expressions I love so much in your games but its a completely different style with the new combat and you being able to craft with materials you gathered.
Its quite good and does have a interesting premise I would however possible suggest something similar to Groves Dream Grapple Tutorial where if you can fail and get a wet dream with Grove waking up so something similar could be done if you fail repeatedly.
For quality of life allowing crafting to be done not only with the items in your inventory but also those stored in the Stash at home would be nice and highlighting which items you have the materials for and for which you dont also save some time and you needing to check constantly if you can make this or not.
Another thing I would suggest making the MCs model on the right a little smaller, make it only visible once you open up your menu or allow for the "Hidden Portrait Image" to maybe remove it completely from view as it was a little distracting for me even in the Hidden mode.
I did however notice a visual error while playing. In the dream you have a Leather? Metal? Gauntlet like euipment on the MCs hand but if you set off the rope trap the MC moves his hand yet the Gauntlet doesnt change positions and is just flying in the air until you either fail to free yourself or succeed.