KH1 proud is painful.
You get all the downsides of difficult enemies, slow leveling and all that shit, but unlike KH2, you don't really get many upsides (I forgot if there's more in FM, but overall, it's just really harsh).
You're gonna want to pick either staff or shield, and DROP sword in ANY case. What you pick is ultimately up to you - I prefer the staff as it makes dealing with enemies like Maleficent dragon a ton less painful. Besides, most things will probably one- or two-hit kill you even with shield, it's only worth it because of earlier leaf bracer and second chance.