I think the genre is called "open world survival craft". Note that unlike many games of this genre, Mad Island allows level-grinding.This game is actually extremely fun. Can anyone recommend some non-eroge that have this kind of gameplay loop? The only one I'm familiar with is Minecraft which is not quite the same.
How about Palworld? It seems to focus on capturing companions.
Arc Survival Evolved if you like dinosaurs.
Planet Crafter takes an unusual approach because progression is connected to terraforming.
For some reason, I liked Forgotten Seas.
There are also more construction-themed ones, such as Planet Nomads, Planet Explorers and Empyrion, which allow you to build your vehicles brick by brick.
Games like Terraria and Starbound combine this with metroidvania gameplay.