I think switching the language setting to Japanese for any game you might be playing can only ever be a good thing for practice. But I would give the same caution as I would to anyone trying to improve their Japanese through manga/anime, which is that video game japanese is not always useful japanese. If you have spent 60 hours roleplaying as an ancient dragon in the body of a prepubescent girl, and then try to reproduce those speech patterns and mannerisms at your local konbini, you’re going to sound faintly insane. If you fill your anki deck with seven hundred words for obscure medieval Japanese weaponry, then don’t expect to be richly rewarded for that effort once the N2 rolls around.
The only pokemon game I’ve tried to play in Japanese has been X/Y, which I personally found very frustrating because a) as a children’s game, it was very hiragana heavy, and b) learning the names of all the pokemon is a mission in itself
For N3/N2 level, I think the Phoenix Wright series is among the best choices you can make - the dialogue is contemporary, the setting is non-fantastical, the vocab is mostly applicable to daily life (particularly if you murder a lot of people), and it frequently alludes to Japanese culture. Most of all, by making you answer questions about what you’ve just read, it tests your understanding and stops you from progressing until you’ve worked it out. The best part is that because the dialogue is specifically designed to help you grasp the crucial elements of the story, it greatly assists foreign language learners. So, for example, the witness on the stand will say something about the body being under the statue, and then the main character will talk to himself and be like “did he just say that the body was under the statue”, and then there’ll be an option to talk to the side kick about the body being under the statue, etc etc. - the redundancy is mostly built in.
With something like Fire Emblem: Three Houses, as much as I love it, it’s entirely possible to learn what all the menu buttons do, and then skim or skip the dialogue entirely, which there is a big temptation to do if you’re tired after a long day at work.