Encandilar means 'to dazzle' or 'to blind with light'. It's a vivid and somewhat dramatic verb that paints a strong image.
In the song, the artist sings, "Sos la luz del bosque que me logró encandilar" (You are the light of the forest that managed to dazzle me). This word beautifully conveys how the subject, Lucía, captivates and overwhelms the singer with her presence, much like a bright light in a dark forest.
Milo j spends the whole song refusing to decide whether Lucía is a blessing or a curse, and that is the fun of it. She is "la luz del bosque que me logró encandilar" (the light of the forest that managed to dazzle me) in one breath and "diablo blanco de mis días" (white devil of my days) in the next. The image he keeps returning to is small and physical rather than grand: "Te llevo por los caminos como un abrojo prendido a mi caminar" (I take you along the roads like a thistle caught in my walk). A burr stuck in your sock. Not romance, exactly. Something you cannot shake off.
Then it turns darker. "Demonio que te guía por el pacto de la sangre" (Demon that guides you through the blood pact) and "chupa tu alma y energía" (sucks your soul and energy) make the muse into something that feeds on him, and by the second half his body aches and the lights are "amagando a que todo va a oscurecer" (threatening that everything is going to get dark). Soledad Pastorutti, one of the biggest folk voices in Argentina, opens and closes the track with "Cuando se encuentre perdido en el cielo" (When you find yourself lost in the sky), and hearing her beside a rapper born in 2006 is half the reason this works.