The idea for the game is good, but there are a few nuances that I think could improve its implementation:
1) you could make it so that elves interact with something, not by touching their collider, but by reaching a click point with the mouse, if the mouse clicked on something to interact with. Now elves can crash into something on the path and interact with that object.
2) I think it would be worth saving the elf that was selected after giving a command to him. Your game is similar to RTS, so this approach would be more player friendly. Right now, having the selection from the elf disappear after giving a command is confusing.
3) It is worth visually showing the selected elf for better player response.
4) It is worth using the same images for the same objects, so that visually it will be better understood what object should be forged. It's not critical here, there are only two objects: one curved and one straight. But if there are more of them, the player is likely to get confused.
Good luck! If you want - you can watch our game, we'd love to have you!