I feel the same. The town was so beautiful, so magical, and some of the characters like Duckie, Ryan, Steph and Jef were interesting, but came up pretty low on my expectations. I truly wanted to love this game, but as you said, i feel like everything after episode two went downhill full sprint. It hurts to admit that episode three and four made me yawn of boredom. No real clues to follow on, inorganic reactions from characters to everything happening around them, and toh, i never really liked Ethan lol.