Have you guys tried the Twilight missions yet? it's a change in area coloring and scenery to dark red, enemies replaced in areas with stronger ones, more enemies etc. but the reward payout is greater for playing on it. There is this flaming wheel Yokai thing in some of these twilight missions too. I finished the one with Hino-enma the other day.
Okay so I'm at the demon on the boat. Can't seem to beat him though. I can dodge but eventually he takes me out in two hits. And he takes like no damage from my best weapon with a buff.
I really wanna recover my souls its like 12k lol. But they are in the boss room
He's actually pretty easy for the first part, the second part he obtains faster movement but not at all super difficult. You'd want to attack him at certain points and avoid him completely right after because of the large area spinning chains attack he does. You should attack when he finished the spinning attack or two chain ball swings. (2-3x strikes of mid stance Katana should do it) and then immediately step away for repeat. The second part is when you shatter his chains, he'll tend to throw the chain balls at you this time which is not at all hard to dodge either. If he's still giving you trouble throw in some Sloth talisman to slow him down, that should allow you to get more hits in.
There's an item that allows you to call back your guardian spirit holding your Amrita. Check to see if you have those in your inventory. (Course, don't constantly use the item since it's limited, use it when you are really stuck in a jam or you are about to level up.) I only use it when I managed to die somewhere deep within the stage and I get transferred to a earlier shrine part of the stage. Really useful in Twilight missions.