Control and Resident Evil 2 Remake still look incredible and run well on fairly inexpensive hardware today. We don't need globally illuminated Unreal Engine 5 games with individually modeled nostril hairs on each character that require graphics cards with prices in the three digit range
Graphics should just be kept at late PS4 level for the foreseeable future to keep games as accessible as possible
Yeah Square did those scenes obviously for promotional material and like you said it didn't match the actual in-game models sadly.
Shenmue's Passport disc did kind of the same thing, having high poly character models for scenes of just talking and no in-game play.