Alright so, several people have been asking for help to the combat of the dream world so I thought I'd put one together explaining the spawn layouts, who to go after, and how to fight without too much effort. This is my first time posting like this so hopefully everything works.
As such, I only have my save which retained my level. Upon defeat or leaving the dreamworld willingly, all inventory items and currency are removed, but at least you keep your experience (this effects max health and stamina; no visible effect on damage done).
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Here are the spawn possibilities for the main area:
Possibility 1: (Yankee + Blond + Girl (Maho) + Blue)
This combination is one of the better ones as you can take out at least 3 of the 4 spawned enemies.
Zone 1:
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The blond guy and the Yankee spawn in the lot to the left of your apartment's exit (assuming you exit facing the railroad crossing) and are fighting each other. Both are hostile and will aggro on to you if you approach. You can either wait for one to be knocked out and then finish off the other, or just pull a
Player 3 has entered the game and take them both out. Hit detection can get a bit wonky, but both are susceptible to kick-animation-interruption (explained later on) . Your choice.
Zone 2:
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Maho spawns just by the board for train tickets and walks on that side of the tracks, usually keeping near the small lot there. Be advised that she will aggro you if you get close enough. Most of the time she is unarmed, but may occasionally have a riding whip (observed 1/5 times loading this spawn). Blue haired dude spawns in one of the yards and patrols down the road, comes across the tracks, makes a turn down to the other lot. He is not hostile until hit by the player. When over by the other lot where the blond and Yankee are, they may be aggro'd to attack him, thus causing him to fight.
Possibility 2: (Blond + Maho + Big Guy + Yankee)
This is one of the less desirable spawns as Maho is armed most of the time (observed 4/5 times) and the blond is the only other enemy that can be taken down easily.
Zone 1:
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In the left area, Maho spawns on patrol moving down the road, crossing the train tracks, and heading up the side road. The giant guy and the Yankee spawn in the lot. All will aggro you due to proximity. I wouldn't bother fighting the two together as they can quickly wear you down and they don't drop significant coin amounts. Maho can be taken down through careful strikes, just stay out of her swinging range. Video link:
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Zone 2:
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The blond guy patrols in and around the station. He's easy pickings; just try not to get caught on the entry way. Video link:
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Possibility 3: (Blond + Yankee + Musashi + Gaint + Maho
The last combination with the most enemies. Five enemies (two easy to take down, two very risky, and one that can mess you up if you don't play smart).
Zone 1:
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In the left lot, you have Maho and the giant. Both are armed, so don't bother.
Zone 2:
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Across the train tracks, you have the blond guy, the Yankee, and Mushashi. Blond guy starts at the location board and moves into the station (he's not hostile, but will fight after being attacked). Yankee is in the fenced lot (far in picture; hostile in proximity). Musashi patrols from the end of the road, across the tracks, past your apartment, and back again (hostile if she spots you).
Combat:
In an earlier post, I described how to fight with minimal losses. The blond, Yankee, and Maho are you're best bet for targets as they have the slowest attack speed, the shortest hit detection, and usually the most money (Blond is first though). I included a pair of videos in the form of mega links that demonstrate my main tactics. Click-Click-Kick allows you to take minimal damage while racking up continuous hits: keep backing up, let the stamina recharge.
If you absolutely want to take down Musashi, just try to limit the amount of hits you take. She hits hard and repeatedly, so blocking is not a great plan.
One weapon can be found in the corner of the station (baseball bat) and whips can be picked up from Maho once defeated. Hopefully this helps.
Extra Notes:
Don't bother with the alt-key heavy attack, its damage is negligible compared to kick of your regular attack (or it's just glitched for me...)
***Edit for spelling***