Again, I am posting what happened a day later. I didn’t play for too long because my head was being a little bitch again. I managed to clear a level or two and unlock a few more village elements. I extended the river from the pond but the water is not flowing and I can’t find a switch on the dam. I guess I need to unlock something else in order to open the dam. I’m about to go play again, so hopefully, we will find out soon.
EDIT: I cleared a few more levels and managed to completely rebuild the shop as well as some other houses. I’ve found out some stuff about that boy in a bear costume. It seems his dad was a great hunter, but five years ago he just left with no warning and never came back. This made the kid pretty hard on the outside so I need to find a way to reach out to him. Maybe I can find out more stuff about his dad in the dungeon.