Hylics by Mason Lindroth is the only other thing I'd ever seen do the "physical art" thing in a videogame. I love it a lot, so now curious about the other games you've mentioned! Thanks for the recs.
The Dream Machine is all out body horror excellence from an indie studio in the truest sense. The fact that they saw the project through to the end, in real time, over the course of several years and while communicating the whole time with their Kickstarter backers is just as impressive as the game itself. Pure brilliance.
https://store.steampowered.com/app/1553260/Scarlet_Deer_Inn/