What I don't understand is why the camera is behaving strangely. Also, it seems like some enemies have super high punch "reach", because when you flybash above them, you get hooked onto them, and can't move forward

you try to punch them for some reason. Or maybe it's their collision? It definitely happens on the ghost guys (I assume you just moved their collision?), but also in the bridge area before 1-9 arenas.