There are games with very realistic character animation like e.g. The Last of Us Part 2. But that is a lot of effort, requires a lot of expertise and is likely very expensive. Correct animations can also conflict with fast and responsive movement, and most games will prefer responsiveness to realistic animations. Having both requires advanced approaches that can blend different animations well, which seems to be rather difficult.
It's funny, I remember reading somewhere that research on Computer Graphics, rendering specifically, is 'solved' because photorealism had been accomplished.
What had been omitted though was that efficient photorealistic rendering, as well as the visual elements that human perception instantly picks up on such as material(s) translucency, lighting/shadows, and as you've already mentioned animations (and the bigger challenge of facial expressions!) is what everyone's after.
And what we have at the OP is indeed impressive work, which still looks artificial. Contrary to the critique of the comments so far, and outside the graphics research interpretation, this isn't something necessarily negative imo. I like video games that preserve a few elements of non-photorealism.
This is an interesting video about how hard it is to effectively animate just one small aspect of human motion: walking through a door: https://youtu.be/AYEWsLdLmcc
