Our "square foot garden," Mel Bartholomew method, isn't working very well?

If you have used this method, please share ideas.
I've read in some previous questions that you may have to "tweak" the soil mix, (peat, vermiculite, compost) but I'm not clear as to what changes would have to be made.
We installed the system last year, so this is our second summer. The plants seem to dry out and the veggies aren't very big and seem leathery. Is this just a water-retention problem, or did we get bad compost? Last year the compost wasn't the greatest, so this year we added lots of what I thought was a high-quality one, but our results aren't much better than last year.
Do you think adding in some water-retaining crystals would help, or is there something else we could do to get this to work better for us?
We live in Utah, so we have some annoying challenges, short growing season, very hot dry summers, possibility of late and early frosts.
We've also found that mice just love to dig up the fluffy soil, and also chew on the produce.
Thanks for reading my whole question, and thanks for your input!
 
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