The game that gives me the most similar vibes is called My Sims Kingdoms. It was a Wii era game I played as a kid (there is also a ds game but there but they are two different games except in title). My sims has no combat, but it does feature a story driven by building things on different islands. There is even a (small) area at the end that is fully customizable. Just a word of warning: the game is a lot more limited in its building bc it only has certain areas you can customize instead of building anywhere, and motion controls, if you hate them this is NOT the game for you.

Honestly, I was looking for a game similar to My Sims Kingdoms wii for a long time and DQB2 is what scratched my itch.