I'm colorblind and am having a hard time with the "you attack" vs "enemy attacks (magic)" color choice.
Outside of that, I'm digging this.
Outside of that, I'm digging this.
If this was a full-blown game (and not a 7-day proof of concept), I would try to make the combat UI more robust.
Still, if you are set on using #, you could try varying size, boldness, italic, rotation, font, etc.