I've used the tail attack on enemies the amount of times it takes to kill them, they just stasis or float in air and don't poof.

Yeah this is a pretty glaring error with the GOG version of Yooka Laylee if you use the GOG Galaxy client. Some people report success by simply not signing into GOG Galaxy and just run the game by using the exe in the game folder, but for me and some others you can't even have it installed on your computer at all. I have to completely uninstall GOG Galaxy to play Yooka Laylee. You might also need to start a new save file after removing GOG Galaxy, you'll just have to test it out. So far not a word from Playtonic on this forum or anywhere else if they are working on it or if GOG users are second class citizens.