I like the combat, reminds me of Fire Emblem but I think it works pretty well for attacks to always do some damage. I liked the town level where you could do the high risk/high reward thing of going after the general instead of conservatively winning by points, at least for me it came down to the wire and was fun to work though. The rest of the levels seemed easy although that may have just been because I did an extra bandit level to get everyone to level 3 for the town one. Maybe you could keep the main campaign basically the same difficulty but add some side levels for extra content that are a bit tougher.
I'd suggest is to make it so crits and glancing blows always modify damage by at least one (still with minimum one); as it is if your characters do 1 or 2 damage then crits and glancing blows don't do anything, which is especially rough with Sherry and Eleanor since their whole thing is doing more attacks for lower damage per attack. As a QoL it would also be nice if the turn ended once all characters have moved, and if we got a preview of damage/hit/crit on hover over target for what we'd attack we're going to use.
Tank characters are kind of one-note, they're big balls of health but they aren't really threatening so you just leave them for last and then are spending the last few turns plinking at them until they die. I think they could be made more interesting by having them take more damage but give them a noticeable ability, like retaliating if you hit one of their allies while standing next to them.
Also more Phoebe/Kreios threesomes. It's too bad Phoebe canonically is into petite girls, I want to see her dom Heimdall.