Very cute, and quite polished. I liked the reveal of the Blanket Ending part way through as it introduced another aspect of challenge - tight inventory management that gets tighter as you make more progress. Fighting hordes of enemies while managing inventory almost gave it an early Resident Evil vibe, despite the setting.
I also enjoyed the little details that are revealed over time, like how the mushroom hat grows into your body and increases your max health. Also adds to my theory that this is secretly a horror game! This is where the game really shines. As you go deeper, the game seems to reveal more mechanics and details that were always present, but unnoticed. Another example I liked are how items can get dirty (I'd already dropped my wet wipes when I realised this!)
I did find that I was often dropping items on the floor to make space to pick up a new item just to see its stats, so maybe there's some room to improve the ergonomics of inventory management. Also I often dropped items accidentally because 'A' opens the inventory, and also drops the current item, and I'd often hit it twice expecting the inventory to close the second time.