Was planning to spend the day optimizing, but instead ended up taking the whole day to implement a final few gameplay elements and to make tweaks the the level.
It wasn’t all in vain though. I realized the realize why Animation component wasn’t working was because I hadn’t marked those animations as “legacy” (which can only be seen when the inspector is in debug mode).
Anyway, I saw that Animator was taking a huge hit on the CPU, so I switched all the animation back to Animation, and things are running much smoother now.
Also, finally all the gameplay elements for world 1 are now in. Even when it comes to making levels, the last 10% really do take 90% of the work.