I CRACKED THE CODE!!! I made an invisible copy of the level sprite and reused the player's hitboxes, then applied this and the main level position to the enemy sprite and the game can now track it in real time! It is only one enemy for now. I may keep it like that or add more...
Added enemy with AI and gun Added player bullet Enemies light up when hit Bullets glow when hitting level Bullets are now a smooth gradient light from transparent to opaque