Flexible Survival

I've been staggering around the RedLight District but nothing demonic or angelic is showing up at all, let alone this event. I've also found the Bright Alleyway and the Burned Out Chapel already. Have I somehow screwed myself out of finding this event?

In red light district hunt for angel. You'll probably get the nutjob on the car first, but just hunt a second time. You'll get it. Then you can head to the chapel, talk to the angel and that should do it.

how do I hunt? It's never given me an option to do so.

While in a location, type "Hunt [critter or event you're looking for]".

So for Angel Vs Demon, type "Hunt Angel" or "Hunt Angel vs demon" without the quotations. It's not case sensitive so you don't need to worry about capitalization.

With critters, you'll get a message saying "you think you see some [critter] tracks" if you're in the correct area, regardless of whether you're successful at hunting. If you get the message "You don't think you can find what you're looking for" you're hunting for something that doesn't exist, either because you typed the name in wrong or because it's an event you've already found and no longer occurs. If you get the message "Perhaps you should try looking closer to what you're searching for" it means you're in the wrong location, like if you were to try hunting Angel Vs Demon from outside the Library (the Outside Exploration zone) since that event occurs in the Red Light District area.