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Choosing "start (skip intro)" after restarting after a loss causes all helper characters to turn invisible and causes Susie and her target to turn invisible for the rest of the fight after using Overheal. On Win11 with the recruit var, if that helps any.

I had the same issue. I don't really know specifically how I fixed it, but killing processes in the task manager and trying again with fewer system resources allocated to other things seemed to help. Once the game was open, restarting the background processes didn't hurt anything.