This is really cute. Agree with the previous commenter that the torch feels great, but unfortunately the knife less so. Combat feels a bit too clunky for a game where killing enemies is a requirement. The game could also use some kind of checkpoint system, or just restart from the current level instead of from the beginning.
Still, I think this is a really unique take among the "only one light source" entries to the jam I've seen, especially since you can retrieve the torch and since you have to place it strategically during combat so you can see what you're doing.
I think with a bit of juice for player movement and combat interactions, this could be fantastic!