To add some infos to what I posted above (the info wasn't from me but is alright), while difficulty is all about levels caps, to alleviate this you have two other progression systems, items and skill points. All items you find have also level caps and items of the same type can have different caps, so you'll always seek out either the same items with a higher level cap (levelling up items increase their usefulness obviously, like attack for weapons or defense for armor stuff) or items with better base stats. The other progression path and even more important one is skills which isn't completelly capped by levels. That said, you only unlock certain skills at certain levels, but once you have unlocked them you can farm skill points and level up the skills as you want to (though most skills only level up (so far) to 2 or 3 upgrades). These skills are also basically the key to defeating the bosses on the highest difficulty as the level cap makes sure you can't just hit the bosses blindly (most garden variety monsters though you can).
Difficulty also informs how the map works, on the easiest difficulty you have the mini-map on the movement screen and the big map from the get go, on the second difficulty level you only have the mini-map in every level and have to unlock the full map (or full mapping tool) and on the highest difficulty you have to unlock both mini-map and mapping tool in every new dungeon. Important to remember is that you can only switch to lower difficulties during gameplay and can't switch back up, so if you start at the highest and switch down to either easiest or normal you can't go back to hardest, same with switching from normal to easiest.
There are no random encounters, you see encounters either as fixed floating items on certain spots or monster groups (same item different color) that either flee from you or follow you, but since they can't open doors they are usually limited to the rooms they are in.
Overall, the game feels like an attempt to make a dungeon crawler for beginners though I'm not sure how I feel about the whole level cap thing. Level design even for an Experience game so far is rather simplistic but the game does have a certain addictive factor to it. The visual design is super kawai weeb stuff, so if you're not into that I would stay far away.
That said, if you are interested in getting it, really wait for a sale, at the current price the game is hilariously overpriced and you will regret getting it. Wait until it's at least down to 20$ or € or go for other options.