It's not supposed to be pixel perfect precision like a character action game:
You need to embrace this automation as much as your mind might be telling you not to. Timing the switch between these states is the core of the combat.
This is pretty true. Getting the Blink defensive ability that lets you hit square just as you're about to get hit will probably solve a lot of those issues for people, since it helps me out quite a bit to sneak in extra attacks and stay healthy.
Surprisingly enough this combat system is about learning enemy patterns and dodging them in advance with very little tells. Once you know how an enemy fights it's way easier to take them down in the future. Like I took out level 44 hobgobs without being hit once because I already did a hunt with them and got my ass handed to me before I won. Since I knew their attack patterns the next time around I was able to predict and dodge accordingly. Different weapons also afford different methods of moving about the battlefield, like holding left/right with daggers has Noct take large strafes left and right while holding down attack, so you can find your opening or slip around behind for a blindside.
There's a surprising amount of nuance to the battle system I find. The story though...
I mean you don't HAVE to sleep. And you can just run out of their target rings to make them leave you alone. You can probably down those iron giants in the mid 20's also, they're not too terrible.I have to sleep to avoid level 30 enemies...