The character feel is much improved which was nice, however I feel like it could use a bit more "snappiness". Maybe move just a bit faster, change directions a bit quicker, etc. That being said, I believe sound will greatly improve this or possibly completely solve it altogether.
The puzzle design was good and I felt a few "aha" moments, but overall the puzzles just feel good, not great.
To be fair, I just played through Baba Is You so maybe take this with a grain of salt, but after completing this demo nothing really felt memorable to me. To compound this problem most of the levels felt very samey.
In my opinion, this game totally has the foundation it needs to be something special, but I can't shake the feeling that something is missing that would take it to the next level. Unfortunately, I have no idea what that is.
Good work and best of luck!