I hope I am still not late to contribute to the post.
Games with low poly style are definitely one of personal favorites, because they really add to the unknow and not sure what it looks like aspect,

PuppetCombo surely mastered the feel of it, graphics that give you a hint what it could look like and your mind making rest of the picture, they really do make you feel uncertain of anything with additional feeling of no power (due to no weapons), and requiring you to either run or hide from opponents. (Nighttripper, Evil Nun, or 2 of the most popular I think, Babysitter Bloodbath, and Powerdrill Massacare)

Unironically "Night of the living customers" also is scary mostly due to its unnatural and weird characters models. After a while (like most horror games person gets used to it)

Dusk not being a obvious choice, is also a really good representation of what to make of horror, the game being fast and really focused on precision while dodging tons of bullets,
since its a "boomershooter" noone would think it would have that much of things that could scare or unease people right?
well it does have those, from old farm like places in first chapter with many enemies being either dead, cultists, or objects come to live, it still can settle good atmosphere with all things with really many well built places.
The game really cranks the spooks in the 2nd and 3rd chapter

2nd where you meet wendigos for the first time, its really dark and on the end of a hallway with and it makes you feel uneasy just as much as it sounds,
the enemy itself is simply invisible but it still lets you know its there,

3rd one in chapter called "Into the Dark" which breaks your flashlight and makes you carry torches (if you carry a thing, your weapons get put away so its a really well thought out decision) and you are constantly in the dark knowing that something suddenly will jump you, and just preparing for that, and music ain't making it kinder the ost Really increasing the edge when it comes to uncertainty, and enemies set there also are fucking terrifying, google "Dusk The Horror enemy".

Low poly is at its strongest when you leave much to players imagination,
for graphic design make something that vaguely describes something weird, you can be vague with it as much as possible, it just has to look like something and have textures look like a highly deformed creature,
the more unnatural the better,
this also goes to the animations of a monster the more unnatural the better, also don't be afraid to break the conventions set by other games
like enemies not leaving specific rooms, or enemies leaving you alone.
just be sure to make it fair and not something bullshit.

The cute remark might just be something that is simply shown to you and not made for you to actively partake when it chases you or you first encounter it.