SYD OF VALIS / Renovation / Sega Genesis
So the original Valis got a proper sequel in the same style, and it was released far and wide across a number of different platforms ... EXCEPT for the Sega Genesis, which was the only one to get this weird "super deformed" comedy version instead.
A number of game series had these chibi-fied installments, like SD Splatterhouse and SD Snatcher, but these things almost never made it out of Japan, this was one of the rare ones they tried localizing. Unfortunately, it had to be the game with some of the worst gameplay and level design anywhere.
Yuko apparently went back to her life of being a normal schoolgirl after the events of the first game, and she's just walking down the street enjoying her ice cream one day when a new jerk of a demon pops in and is like "the fantasy world is mines now lololololo." So off she goes to singlehandedly carve up the forces of evil once again (who is she even saving in this world? Is there a human population?)
The gameplay is totally different from the previous game, with everything smushed in and condensed to a much smaller play area. It's also one of those irritating games where you have to be really far to the right of the screen to scroll it. Combine that with really floaty platform-jumping, thoughtless enemy placement and annoying mini-boss battles every five seconds and you've got Crap Soup.
The one halfway interesting twist here is that you can now collect and switch between your sword types on a menu, and you'll also get new outfits after defeating certain bosses that raise your stats. The outfits are pretty much just a linear stat boost after certain levels, though, unless you want to see short pudgy Valis in the cocktail dress you got three levels ago so much you'll take the defensive penalty to do it.
* Gameplay Video