Wind waker lighting shader effect on 2.5D Unity scene

Question

I was following a YouTube video and guide and got some shader scripts. It was very plug and play which was nice. But I would like to tweak a few things but I have 5% knowledge about shaders.

I am using URP

1. Id like it when the lights overlap they aren't additive. (I don't want that to happen in the green box)

2. The guide mentions I need a different blend mode for scenes that are completely dark.

(here's the link to the guide) https://www.patreon.com/posts/wind-waker-style-78831006

Here is what my scene looks like without the directional light on.

If you review the shader tutorial it explains how for URP it needed two shaders since unity cant do multiple passes or something.

Another issue ( i found a workaround for) is that the shader doesn't apply to everything that gets hit in the circle. The flat sprites, which are the ants, are tilted at a 45 degree angle. They don't get the light applied to their front side (plane mesh)

So there are two shaders. one is a mask and one is the light to be Blend "multiplied" onto other mesh's

Here is the light shader:

Shader "Custom/StencilLight Color"
{
Properties
{
    [HDR]_Color("Color",Color) = (1,1,1,1) 
}
HLSLINCLUDE

#include "Packages/com.unity.render-pipelines.universal/ShaderLibrary/Core.hlsl"        
struct appdata
{
    float4 vertex : POSITION;
};

struct v2f
{
    float4 vertex : SV_POSITION;
};



v2f vert(appdata v)
{
    v2f o;
    o.vertex = TransformObjectToHClip(v.vertex.xyz);
    return o;
}

CBUFFER_START(UnityPerMaterial)
    float4 _Color;    
CBUFFER_END

float4 frag(v2f i) : SV_Target
{
    return _Color * _Color.a;
}
ENDHLSL

SubShader
{
    Tags{"Queue" = "Transparent" "RenderType" = "Transparent"}  
    Pass
    {
        Tags
        {
            "RenderType" = "Transparent"          
            "RenderPipeline" = "UniversalPipeline"            
        }         
        Zwrite off
        Ztest Lequal
        Cull Back
        Blend DstColor One
        
        Stencil
        {
            comp equal
            ref 1
            pass zero
            fail zero
            zfail zero
        }         
        HLSLPROGRAM
        #pragma vertex vert
        #pragma fragment frag         
        ENDHLSL
    }      
    Pass
    {
        Tags
        {
            "RenderPipeline" = "UniversalPipeline"
            "LightMode" = "UniversalForward"
        }
        ZTest always
        ZWrite on
        Cull Front
        //Blend DstColor One
        Blend DstColor One

        Stencil
        {
            Ref 1
            Comp equal
            Pass zero
        }         
        HLSLPROGRAM
        #pragma vertex vert
        #pragma fragment frag
        ENDHLSL
    }     
}

}

and here is the mask shader:

Shader "Custom/StencilLight Mask"
{
SubShader
{
    Tags
    {
        "RenderType" = "Transparent"
        "Queue" = "Transparent"
        "RenderPipeline" = "UniversalPipeline"
    }
    
    LOD 100
    
    Pass
    {
        
        Ztest Greater
        Zwrite off
        Cull Off
        Colormask 0
        Stencil
        {
            Comp Always
            Ref 1
            Pass Replace
        }
    }
    
    
}

}

Please let me know if you need further details. Thank you!