I did my best to find bugs or glitches but I could not find anything unless trading for 2 bags of chips is one, and well I never found uses for some items but I would say that is not a bug or problem, just slightly confusing; Maybe the shadow monster spawning in the factory can become a little annoying since they spawn blocking the elevator for example and you have to re enter rooms multiple times.
The story is really good, specially the beginning and the illusion house, the forest excluding Red's Tree house and the chase in the forest with the bushes (that is amazing btw) feels a little slow.
All the CGs are beautiful and there is plenty of them, and the music fits the areas well, and that little switch of tone between areas of the same map is really good, awesome use of sound to enhance the experience.
There is other stuff I noticed is missing but since the game is still in development I don't think is necessary to mention; Can't wait for chapter 2!
Keep up the good work!
PS: I feel bad for the knife lady, she deserved better, damn you Lilith!