By chance I decided to start over and create a new profile so the mod wasn't activated (still playing it on default hard). Went much better. Default hard isn't too much of a challenge after you get past early level so I'll definitely go back to the mod on my second playthrough.
Hey I have 2 questions.. why use a mod that make your game harder on your first play through and did you manage to overcome your struggle at the Lighthouse on your second play through?