Honestly this sequel is bursting with world lore and took a dark turn. I'm so happy to see so many improvements with this episode! Great introduction with the different shots of scenery, I love the little insects and animals you sprinkle throughout the video. The photo shattering is a great reminder of the character and foreshadowing her story.
Roxas was going to propose for Flare to live with him, but the way the music started was symbolic of his heart dropping at the horrific sight, I love it. Roxas and the girl I can finally identify as his sister have less screen time but their personalities have shown who they are more than episode 1! I love that in the build up to her rescue theres no shortage of violence, there is so much going on and you have represented that chaotic feeling really well. The way Flare was hiding in the chimney is really smart, the one place where she couldn't be easily spotted is while working. I like seeing some other familiar faces like "the newcomer who will curse us all" and I think the child was the orphan from episode 1. But those are the only two I can account for, at least until I watch some of your shorts, which I do want to admit is a great way at expanding your universe with new characters separate from the main ongoing story.
Speaking of which, you stated this series was "ever changing" as in it wasn't meant to have a main character but many different stories, unfortunately until you have a full episode without your main characters (Roxas and Flare) that's what will really solidify the sentiment. I am excited for that! (Despite me not having seen your shorts as of writing this)
I noticed you moved the subtitles on the top, rather than having them at the bottom? Interesting choice. I did notice a handful of errors, at frame 820/821 you forgot to color the critter... at first I thought you just needed a few more frames before he appeared but I noticed he was there. On frame 3890 you missed Flares eye color fill. On frame 3425 I couldn't tell if the door disappeared behind the mother or if this is a different scene with the re-used background. I like your camera movements but sometimes they're a bit disorienting and its hard to tell whats going on, mainly in the action sequences. At 9:13 when Flare is turning her head, the fur on top kinda comes and goes, its a little nitpick for consistency. I think the sounds you've added are nice, but it feels like you heavily rely on the music where there isn't much sound. I get not having voices, and in areas where the crowds will be screaming or yelling being dead silent is eerie especially if you can hear footsteps fighting and etc. during the commotion, its just something I wanna mention. You could always try using free crowd noises to give that feeling of the terror and violence.
I love that the overall look of the art is cleaner and better quality, no more pixelated lines. It really shows the improvement in that time between 1 and 2. The transitions and animation is really good, the characters are still as cute as I remember. The music is nice and adds to the tone of the episode. I love that at the end we can see the eye of the cursed one, so hype!