I'll start by saying I wish there was a 4.5 star option, and then explain why I've chosen to round down.
The game is more or less what it says: you find yourself in a house, trapped in a 'the rift', with not a whole lot going on. As the days wind on, a series of events introduce you to new characters. (After a while you get some control over the pacing of the new characters coming in.)
In terms of characters, the depth is a mixed bag. Some characters have some internal growth, others don't appear to grow much. Some characters have deeper background lore, and for others it's shallow, leaning on tropes and what's assumed to be common knowledge. This is fine if you know what's being drawn on, or recognise it, but it's a bit of a problem in certain contexts. I'm not penalising the star score exclusively because of this, it's just worth noting that some of the lore needs cleaning up. Since the game appears to be fairly far from done (at least where it's weakest), it's probably not a huge deal overall.
Standard humour issues: jokes land once, which means replayability is fairly low. This isn't like other story-based/story-driven games, in that those jokes punctuate moments; these jokes often pointless text selection options, which can cause a jarring impact. Ordinarily, this wouldn't be an issue for the score either, but it's contributing here.
The biggest issue is the sandbox element. Certain events overlap, and can occur out of synchronisation. There's no 'lock-in' mechanic for events you've told characters you'll do that day; there's also no penalty for a collision. Certain events aren't things you directly trigger, and instead require you to be in the right place at the right time (even though you've told people you'll do them). It leads to the sandbox becoming a fairly frustrating experience.
The number of parallel quests is problematically large. Not because the list is huge (it's like the in other games), but because of the overlap. In on particular circumstance, an issue breaks out between two characters, and you need to mediate it. Because there's no sequence gating, that event can play out after you've done other things, making things make very little sense. Other things can happen in parallel which treat it as unresolved or resolved (there's branching dialogue to handle it).
While it may be a subjective gripe, the lack of gating and sequencing is a huge issue for me. It makes the story part of the game extremely muddy. This is more important because there are individual character stories as well as the main arc (not uncommon in other games either, but it appears to be a driving point in the middle of this). This hits the fore when dreams appear on the wrong night (they'll happen a night or two before your character reacts), or some event between characters will trigger and be unresolved, leading to an unexplained interaction later.
In terms of 'what's wrong' here, the fix would be to gate some of the content behind proper sequencing. I know that this isn't something most people really care about, but in this particular game, particularly as it has expanded out since the first time I tried to play it a year ago, it has only gotten worse.
On the whole, the stories are interesting. The characters have enough depth to grapple with who they are, want to be, and their wants and needs. But they're not particularly deep, and the emphasis is more on the story than the character in them. Of the existing characters, there are three who are probably easy to relate to, or support, and three who could be replaced at random. I expect future story expansions will correct for some of those deficits.
To be clear, the loss of the 5th star here comes just from the gating. The sequencing problem can be a problem, not just an annoyance; I know freedom to do things is seen as important, but there's too much, and the chaos isn't controlled well enough to get the full five from me.