I recently did a hardcore nuzlocke (nuzlocke + no items, no overleveling, battle every trainer) and it was so fun (version 1.17). This romhack is amazing.
Thank you. Glad you had fun. I'm kind of surprised the Rocket in Mt Moon with the raticate didn't end your run.
Though i have to point out something. I don't know if it's intentional or not, but Hypnosis seems to have 100% accuracy (the AI missed 0 times with that, and used it quite a lot), and this makes Agatha way more difficult than the rest of the game. I had very little problems everywhere else, but I almost died there. I lost 1 pokemon and the rest ended up with ~10 HP each (and almost all asleep).
Also, the champion's Rhydon crit me like 4/8 hits. Assuming critical hits still work with base speed, that's odd. It might have been extremely bad luck, but just in case you want to look into it or something.
You just had abysmal luck. Like, Xcom levels of bad luck.
A note on move accuracy though. Retail red/blue had pretty poor rng to where 60% accuracy moves were actually more like 50% accuracy. Enemy status moves also had a flat 25% chance to miss on top of this to make the game easier. In retail red/blue, Agatha only has around 37% to 40% chance of actually landing hypnosis. She gets the full 60% accuracy in this hack, so that's a huge boost relative to the original games and you really feel it.