I decided to check Unity engine and it looks not that bad in terms of customization ability.

Considering character development it can import characters from Daz or other 3d software along with all rigging. So the only issue is if this game has some automated functionality which allows to cut and manipulate those characters. And as I noticed Unity has that functionality built-in already where you can slash any object in any direction and pieces will obey laws of physic. Also there is functionality to simulate almost all physical aspect with great amount of realism.

Considerable amount of work is already done all that I do not see is a complete game which could unite all that stuff into one package.
I guess it may be related to computing power issues as if everything gets packed onto one thing it may require very powerful machine to run