I think that would be Rimworld, which is laser-focused on this aspect to the point of allowing you to pick different kinds of "narrators" ?

(Dwarf Fortress being much more focused on generating a whole world.)

But the narrators aren't narrators; they're just different settings for the relative frequencies of events. Dwarf Fortress is still a more robust "story generator", as the vast majority of what occurs in Rimworld is still basically random events, disconnected from prior events or context.

I guess I see what you mean, but the way they handle difficulty scaling, and the existence of quest chains, by being more fake, is closer to how stories are told, than the more 'realistic' simulation of Dwarf Fortress.