The latest to catch my fancy is party-basedRPGBanquet For Fools, out in Early Access today with a demo.
The island itself is one of those “living, breathing"open worlds.
Perhaps more “disquietingly animate” than “living, breathing”: some of the residents are ghosts.

Combat is real-time with a pause when your action bar fills up, as in the elder Final Fantasies.
Party member stats may unlock unique choices in dialogue, together with evolving relationships.
Not sure if there’s any character HP loss involved, but there should be.

But I approve of the muckiness of Banquet For Fools, and welcome more games in this vein.
The game will be in early access for around 8-10 months, according to the Steam blurb.
Possibly a good time to pounce on that demo.
If you enjoy the aesthetic, you might also likeFelvedik.