I'm a writer by trade, please forgive the wordinessI think your dialog is well written. It's just much text at the wrong time.
My take on this:
The "great master" whom the player fights in the tutorial went down in a single hit in my run (maybe that was a bug?). Anyways, that does take away a lot of the feeling of him being a "master" (what a great master he is that he goes down instantly). I think it would have been easier to digest (emotionally and logically) if the dialog was divided into multiple parts by tutorial gameplay. The opponent could always be the master.
Like this (please excuse my writing, am neither an author nor a native speaker):
Master: "So, let's go through the very basics, just to warum up. I know you can do it blindfolded, but indulge me, please."
-> "Dialog that saying [A], [D] means move".
-> Then immediately follow that up with a short gameplay section where the master wants you only to move left and right.
Master: "Very good, you seem in execellent shape. Let's pick up the pace!"
-> "Dialog run, jump, duck" (notice the joke with "run" and "pick up the pace", okay sorry, I love those jokes :D)
-> gameplay section run and jump
... and so on for all the things you want to teach in the beginning.
Keep the new things the player has to do at a minimum. No more than 2 or 3 buttons, ideally just one. If you are smart you can even integrate the keys into the level (like an A shaped stone to the left that glows until you stop over it, then the D shaped stone on the right starts to glow, stuff like that)
Then in the end you can do the fight just like you do now and I promise it will be much smoother and you will have managed to squeeze in as much dialog (maybe even more) than now *wink* *wink*
Also, maybe do NOT teach the player moves he/she does not need yet. Teach them when they need it.
What I mean by this is that for example the [F] key is not used until later (the character already starts with the training sword) so why not teach [F] later.
The improved version of this would be "Teach them when they need it
ONLY if they need it." By that I mean that maybe experienced players have already tried [F] to pick things up (it's a common key binding). Keep track of that and if they did then simply skip that tutorial dialog (also helps a lot with reruns).
Also #2: Please make the KEYS the user should press stand out in the text. Either like I did in my text here (notice the [] I used) or even better by [] and color. Maybe also higlight the single action that it does, best use a single verb.
Do you think the old font (which still plays over dialog and the "help" menu) is easier to read?I have a strong optionon on fonts. In general pixel fonts (especially those very low res) just suck for readability. Your custom font is particularly bad (sorry for being harsh). For example: the O and the D are only differentiated by one single pixel. That's just crazy bad in terms of readability. Also ALL CAPS IS A NIGHTMARE TO READ. People do not read letters, they recognize whole words and most are trained on the default writing style which is neiter a pixel font nor ALL CAPS.
Another thing I do not like about this font (and this is somewhat subjective) is the style itself. Your game is about swordsmen in asia. Just google "asian writing style samurai" and put in on image search. Notice something? Yes, all the letters are smooth bow/curve shapes. Your font however is bulky (to the left) and very straight. It would fit into a Warhammer or Halo Universe but not here. Just my opinion of course but if I were the art director on this I would reject it and send it back for redesign. I know it is very hard to work with such few pixels but I dare you to rework this. It will pay off. - Again, this is my subjective opinion
My first round of playtesters said it was absolutely necessary to have a "you died" type screen ala soulsgamesWell, is your game a soulslike? Yeah you die a lot in these games and they are hard too but I think in terms of how quickly you die here you are better served with comparing your game to things like Super Meat Boy or Celeste.
Btw.: these things can be dynamic. You have made a lovely death screen! Show it in full length but maybe only the first few deaths or only if the player has not died for like 10 minutes. If the player died recently then skip it or make a very shortened version of it. Add a "skip deathscreen" checkbox right below it. That way the players can decide. You can vary this a lot.
it would look like ONLY investigate popped up first, then after investigating, enter would appear?Yes, just give the player one decision at a time. Maybe dim the other option until it is ready to be picked. Not sure, I don't have a good suggestion here, just that two bright options at once is confusing. I figured the priority thing out eventually. It just took me much longer than it should have.
coyote timeThat is an execellent idea. Some people say they like hard controls but in reality (my subjective experience) 99% only like to THINK the controls are hard and they rock them. If you give them the forgiving version of the controls without telling them then they will almost always enjoy those more.
Phew, sorry for rambling on about the font. It's a pet peeve of mine. Btw.: please give your text some room to breathe (especially around the edges of dialog boxes). It's not always easy to do but it makes a difference. Better shorten the text than squeeze it in.
Best of luck with your game. Let me know here when you have a new tutorial to test