Ok, played to level 3 with the floppy version now. Some things are different compared to the CD32.
So far what I've noticed:
1. Floppy version has no intro
2. Floppy version has less screens you can go to. Like on level 3, you start off on a different screen than the CD32 one and there is no longer a bouncer you need to bribe with money to get into the palace, thus no money bill either on the ground outside the store...
And this time I can get the saw:
(I only have low health cuz I just hastily ran there to check it out and didn't start recording yet)
Maybe it's just a matter of luck and the CD32 version just had to be restarted for it to end up in a different spot, OR the CD32 version IS bugged... couldn't be arsed to try.
Anyway, the game is childishly easy, I had no problems getting to level 3. It's so obvious where the items should be used, same on level 3 but got stuck because of the bug or whatever it is. Took me like 9 mins to get back to level 3 when I restarted with the floppy version.
Oh well, hopefully no more bugs so I can finish this game.