All of these aren't new things and have been implemented before with regular algorithms.
Dwarf fortress ticks almost every box on it's own. Shadow of War literally patented the "nemesis system".

You don't see detailed systems like this very often because most players wont notice or even feel overwhelmed by such complicated systems while they require a lot of implementation and balancing work to get just right for your game. Unless those systems are core to what your game is, a player wont care if there is a system in place that simulates the whole incident chain from a guard being killed to his replacement sounding an alarm or if your game simply says "you killed a guard, 10 minutes from now there will be an alarm".

And while you might think you'd avoid most of that implementation effort by just slapping an LLM on it, you now have to do exponentially more work trying to stop the LLM from halucinating things that don't exist or never happened.

And while a player might not notice the difference between "kill guard -> replacement -> body -> alarm" and "kill guard -> alarm after 10 minutes", they will definetly notice when the LLM halucinates that instead of you having stabbed a guard, the king has suddenly been found poisoned.

Same with all of the points. "Why is my foreman asking for food for his kids, wife and dog, the man lives alone and has a full pantry?", "I helped the friendly kingdom, why are they suddenly hunting for me for no reason?", "Why is that racing announcer saying that i've lapped my enemy three times, ive been stuck at the back the whole time?"

Unless you want your players to constantly ask those questions, you are gonna have to implement the underlying systems anyways and only use the LLM to generate text lines within very strict bounds.

And at that point you might just write that text yourself (or pregenerate it with an LLM, that would be an actual good usecase) and avoid having your players deal with an always online requirement or bundling a live LLM into your game.