The run is indeed going well according to the screenshot
- Get more missiles. Two boomerangs are nice but make a few poor decisions and they'll end up lying on the floor too far for you to reach. The bow is decent if you have nothing else but a tomahawk could obliterate enemies in one hit+bleed damage with a sharpshooting this good
- What to upgrade: whatever you feel like you need, really. A +10 sharpshooting is more than enough to win the game assuming you play well so just upgrade whatever will help you deal with whatever issues you're facing. End up in melee often? Upgrade armor. Can get away from melee enemies but ranged enemies are ruining your life? Upgrade prismatic light to blind them=stop their ranged attacks more often. Everything is already great? You'll be fine with just upgrading sharpshooting.