Have you tried the https://huggingface.co/LatitudeGames models? They are used by the https://play.aidungeon.com website, but can also be downloaded and used with llama-server in conjunction with something like SillyTavern.

But in general, I've experienced things similar to you. I've also found that LLMs are bad at subtext, e.g. hinting at an NPC being a werewolf or vampire.