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This is related to the engine which I don't have any control over.  You can report it to the developers of the engine here

The Story of Super Mario Bros. 2 - YouTube

A long story cut short - Super Mario Brothers 2 (Japan) version was too hard for a Western audience.  So they had to make a western version and a Japanese version.  Shigeru Miyamoto - the founder of SMB2 was also the founder of Zelda.  He (and a lot of other game developers) got the hint and changed Zelda's vision forever so it would be more accommodating for a western audience to whom they were trying to sell and make a profit from.  And one part of that vision was the extremely easy difficulty - which is what you see now.

But prior to that vision change, Zelda was a difficult game.  If you've ever played the NES version of Zelda 1 and Zelda 2, you'll see how different they are from the Zelda you're used to and I'll give you the ROMS and emulator via email if you want them.  It's the Zelda that I fell in love with and the difficulty is just wonderful.  I didn't like Miyamoto's design change to cut out the difficulty and I've stayed away from modern Zelda games because of it.

It's not about whiny losers and games being too easy.  It's about profit.  You see ultimately game creators who are paid to make games are accountable to their paying fanbase and if that paying fanbase tells them to nerf the difficulty then they pretty much have to listen to that in order for the game to sell and for them to make the most profit.

You must be referring to the wall panel in level 4 which can be walked through.  It can be seen with the lens and I think there is the lens symbol in that room.  Also if you have the compass, it sounds a beep in a room where there is an important item so you only have to kill all enemies in a room where there's a beep.

Super easy is how modern Zelda is made and marketed by Nintendo, so it's no surprise that many Zelda players enjoy that mode of play.  But that was not how the original vision of Zelda was.  In NES Zelda1 and NES Zelda 2 - The Adventure of Link, there was actually a very different vision of Zelda but that changed after the infamous Super Mario Brothers 2 incident.  I'm a traditionalist and I like the old ways of Zelda even though they're mostly forgotten now.  I can see that you're mostly into modern Zelda but maybe after you complete IoR on super easy mode, you can just give it a try on hero mode??

No - the NES Zelda game definitely did NOT auto-save.  They worked just like you're seeing now.  I have the old NES ROMS and emulator you know?

Yes, you have to be careful and tell it to save otherwise you can lose all your progress.  That's how the old NES worked and that's how Zelda Classic works too as a consequence.

I only loved Isle of Rebirth because of its hard hero mode.  But most Zelda fans seem to enjoy the dungeon construction and the puzzles.  Armageddons and Insanity Unchained are hard but with no dungeons like IoR so you might not enjoy them as much.

Just so we're clear, I didn't make Isle of Rebirth.  I simply uploaded it to this site because I loved it and it deserves to be kept alive.  It's current official repository is going to die pretty soon and I just didn't want to see Isle of Rebirth die with it.  Yes, there are items from the modern era of Zelda in there too - you'll see.

You're correct with the bomb strategy, but wrong in the execution.  To ensure you go into boss fights with a full loadout, you want to save the game before fighting the boss and reload the game if you don't kill the boss (quit without saving).  Only if you beat the boss do you save the game (save and quit).  Are you playing on hero mode by the way?

To ensure that you save the game properly, press f6 and then choose save and quit.  Then you can close the program by pressing escape and quit in the file menu.  I've never heard of this bomb bag bug.  Make sure you're saving correctly.  If you're still having trouble, can you make a video and show me exactly what you're doing and what's going wrong?

It's a very long story behind these games but I'll try to keep it short.  First, there's an engine called Zelda Classic that allows people to make these games with relatively little effort.  Previously, you couldn't export them into standalone executable form and so they weren't available on Indie game sites such as this one.  But that recently changed and I've uploaded a few of them that I love onto indie game sites.

Second, only one of these games is mine - Insanity Unchained.  The others that you see here are made by other people but I like them a lot, so I uploaded them.  But they weren't written by me.

Oh yeah - that too.  I thought that tree was obvious.

You need to be able to shoot arrows with the bow to enter the second dungeon.  You need to shoot an arrow at the blue shield like object which it looks like you did.  To enter the water parts, there go into the forest north of the starting village and then go west.  You need to burn some bushes to get through (stuff like this comes from the original NES Zelda).  You need to upgrade your purse and you can't upgrade it until you beat the 4th dungeon.  

If you want a video walkthrough, go to Zelda Classic → Isle of Rebirth Walkthrough: 1 - Level 1, Seaside Ruins - YouTube. It might be a lot better than me explaining things to you all the time.  They didn't play hero mode though.

Yes, that is a good idea.  I guess I was just too familiar with the program to think of it.  It can be found by simply pressing escape and then going to settings and then controls and then keyboard.  

Controls:  Press escape and then go to settings, controls and then keyboard to customize your own.  They are initially set to A = Z (keyboard), B = X (keyboard), L = A (keyboard) and R = S (keyboard).  L and R are used to switch items without needing the subscreen and space (keyboard) loads the map which can be very handy in some places.

To see if you're in hero mode, just look at the top right of the screen.  If it is a red square then you're in hero mode.

I like that - I like that a lot.  It is exactly what I'm thinking.  I honestly believe you create what you want and not what others want.  If others like what you have done then great.  The only exception to that rule is if you're working for someone and that someone is paying you very nicely for your services.  Then you must create what they want but hopefully their vision and your vision would be one and the same.  But for oldies like me - I've made my fortune and money doesn't sway me like it used to in my younger days.  I'll look into the NES discords and retro gaming pages - thanks for the tip.

Here's my situation.  I've made my passion project and I truly and deeply believe that it is a very lovely game to play.  The problem is that my vision and passion does not resonate with anyone else - particularly someone new and has never seen my game before.  I've often heard feedback saying that my game is much, much too hard and that there's no easy mode.  I've also heard feedback saying that the game's mechanics are too confusing to a new player.

Both of these are true criticisms that I fully accept.  The game is extremely difficult and it assumes knowledge from a very famous NES game.  I've thought about how to fix this with tutorials and an easy mode but the reality is that these things would take a very long time for me to implement and I would see no benefit for myself when I played my game - which is the primary motivation for me to make the game.  I have thought about charging a price for my game as compensation for these services but there is inherent risk associated with that and money doesn't really motivate me as much as it can potentially motivate others.

So what (if anything) can be done about this without involving a lot of time and effort spent on my part?

All right - I was unaware of this because I'm new here.  I'll see if I can change the tags.  Edit:  The tag is now nes instead of nes-rom - sorry for the inconvenience.

It is based off a NES ROM with many, many changes.