By removing the collision for the inset-- the pathing builds much cleaner and works perfectly. Making this change was a simple fix and a easy decision to make. While you can't feel the little elevation change from the side to the inset-- it's hardly noticeable. And removing a little bump to squash a big bug is fine with me!
Here's a few screenshots from the first level. The level is being designed by Chris. Chris also, made the bedroom assets. Greg made the monster and light fixtures. Jon is working on all the animation for the player avatar, the monster, and end game cinematic. Anyways it's pretty cool to see some of my assets in game.