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Level 1 - YAMFOLRL
The answer to this puzzle is:
Words: MORALLY, ORALLY, FORMYL, MOLAR, MORAY, MYLAR, FOLLY, FOAMY, MOLLY, MARLY, LOAMY, FORAM, FORAY, LORAL, MOLAL, FLAMY, ROLF, LOAM, FLAY, MARL, MOLY, FOAL, MORA, MOLL, FLAM, MOLA, AMYL, ARYL, FARO, FARL, FORM, FALL, MALL, FRAY, ROAM, FORA, FOAM, ROLL, ALLY, MAYO, FAR, RAY, MAY, ARM, FLY, RAM, FOR, LAY, MAR, OAF, OAR, YAM, LAM, FRY, ROM, FRO, MOR, MOL, ALL
Bonus words:
MORALLY, ORALLY, FORMYL, MOLAR, MORAY, MYLAR, FOLLY, FOAMY, MOLLY, MARLY, LOAMY, FORAM, FORAY, LORAL, MOLAL, FLAMY, ROLF, LOAM, FLAY, MARL, MOLY, FOAL, MORA, MOLL, FLAM, MOLA, AMYL, ARYL, FARO, FARL, FORM, FALL, MALL, FRAY, ROAM, FORA, FOAM, ROLL, ALLY, MAYO, FAR, RAY, MAY, ARM, FLY, RAM, FOR, LAY, MAR, OAF, OAR, YAM, LAM, FRY, ROM, FRO, MOR, MOL, ALL