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velvet is not a child they are just small
also considering that every other bit of vore was endo, it could just as easily be seen as him just being dragged off "team rocket is blasting off again" style. it's kept ambiguous for the enjoyment of the reader - so you can enjoy the other interpretation of what happens :)

I assumed they weren't a child (given the nature of the game jam). but they're cute and behave like one so my brain tells me they need to be protected anyways.

I didn't realize it was meant to be ambiguous because being in the snake deals damage to the characters and velvet mentions 'digestion' so I assumed it was obvious. I cant interpret it any other way, its like the unknown in horror, my mind is only drawn to the worst possible thing, I can't help it. 

I am curious of how much background story there is, and if it was ever meant to be put in the game. is it superficial or is it just missing due to time constraints?

missing due to time constraints, it'll be added in future updates