So we all know how interactions work right? You go up to something:

You press ENTER/Z, and text appears!

However in "Masked Bravery", there's another form of interaction that happens when the player will press the SPACE BAR

This is called "Observation". Judas will comment on the interacted with object! Be it item, save point, monster, that stuff!

This works with his manipulative lying behavior that he uses to get rid of the anxiety. In order to do so, you need to observe the scenario around you closely.