While not as procedurally advanced as some of the techniques explored here, in my opinion the absolute pinnacle of dynamic music in video games is the soundtrack to Mount Wario in Mario Kart 8.

While the level itself (an unusual point-to-point, highly vertical course) is its own masterclass in terms of game design, the music, comprising three separate movements, each with its own clever way of masking the transition to the next, is unparalleled in ramping up the excitement and drama in concert with the gameplay.

A short video on the music of Mount Wario: https://www.youtube.com/watch?v=-8TBS75U1p8

A longer deep-dive into the music theory of the score: https://www.youtube.com/watch?v=-6K4NiDP04I