- Added Demon enemy scene with detection, pursuit, attack, hurt, and death states
- Configured Demon collision layers, detection area, and attack hitbox
- Fixed Demon movement to pursue player horizontally and attack at close range
- Allowed enemy/player overlap for melee combat encounters
- Added enemy damage and death handling
- Added knockback system for enemies when hit
- Fixed player punch hitbox positioning based on facing direction
- Corrected directional melee attacks so enemies can be hit from both left and right sides
- Fixed collision mask issues affecting floors and enemy detection
- Improved memory piece pickup interaction to support button-based collection
- Continued testing and debugging combat interactions in Graveyard and Demon levels
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