A few notes first: I changed the difficulty from Hard to Normal. If this hack gets completed I can see it being pretty hard considering how the difficulty curve is currently going, but the levels shown in this demo don't really ever get that hard.
Also, I didn't ever encounter the music bug you mentioned in the readme, but it's something worth looking into if you want to submit more versions in the future.
I'm not a fan of rompy hacks (with straight-forward levels) nor of hacks with custom characters. This hack is both of these, but I still had a lot of fun with it?
I think what makes this hack so good is the choice of mechanics. I think the pseudo-cape sword that you always have - except when you get knives - is neat. The health counter and the scarce nature of powerups actually felt extremely balanced. I was never frustrated for barely having health, but I constantly felt in danger and it didn't just feel like I could ever tank everything.
The graphics in general are really good-looking. I think you managed to achieve the athmosphere for each level very well, especially in the castle outdoors and cave segments. The sprites are really neat too, and Allycia has a cute expression. :3
I think the biggest "crime" this hack commits is just... being really simple in design. It doesn't innovate very much, doesn't bring anything new. For someone who's looking for that, this may not be a good choice of a game to play, but for those who just want to spend a spare half an hour having some fun with rompy stages, this is definitely a thing they should try out in my opinion.