I like the 3D. Perhaps a different style or editing/filtering process could get the dev where they want?
I don't have a problem with 2D/handdrawn in general -- some of the best dark/horror games have custom art, although it's usually a lot more moody/stylized -- but I'd agree with the comments that a more dark/horror style is critical and the provided examples might not be there yet.
Still, I'll definitely play another chapter to check it out.
P.S. I'm sure this will be a controversial suggestion at best, but if 3D is definitely off the table: there have been 1-2 heavily filtered/edited real-porn horror games that still worked. They used very dark imagery, with a lot of focus on micro-elements (e.g., partial body shots) and blurry images to create a proper mood (versus trying to repurpose whole scenes from actual, cheesy porn). I'd go that route before I went with bright cartoon art.