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After you put on the entertainment uniform for the host club you are still allowed to walk away and play the gauntlet. Not sure if this is intentional but it doesn't seem so since the art for the battles is the normal jacket uniform.

Where can the water stone be found? I'm missing the last scene under misadventures and I assume it's related

Oh that's my bad, I didnt talk to the store clerk. On my other run through I went to the video store instead of beating Mahir the first time so my first loss to regular mobs didn't result in having to go back. Sorry for wasting your time lol. 

If you lose with the good luck charm the first time (mine was specifically in the second Entertainment section after obtaining the alley key to the three stack with one hyena trainer), and after the first scene with the Doberman completes and Mahir takes your charm away, you can't progress as when you try to return it gives you the Mezz hypno loop where he's meant to go back to the video store but since there's not scene as it's your first loss it's walled off and you can't progress. 

If you beat Mahir at the first opportunity (before you leave the room the first time) and acquire the good luck charm, when you exit the alley the text prompt for whether or not Mezz wants to "finish the job" or go back and fight him still appears.

I got it first try after you told me it was possible lol. Thanks!

oh I kept getting one shot by his attack (and the look when I tried guarding) so I thought it was a fight you were only meant to lose

Where can you get the good luck charm? I probably just haven't gotten to it yet but I'm wondering if I missed picking it up.

Within the year? That seems quite fast I'm impressed

Great game! Keep up the good work and I hope that you continue this project! I love the different endings and the different encounters, even with normal mobs, that happen with both.