I haven't read through all of the posts here, but if you're in the US, it's fairly cut and dry. Though, loli content is kind of an odd one historically. Some get punished (more on that below) and some never see any thing. Maybe it's luck of the draw, maybe they're getting investigated for the real thing and lolicon is just a reason for arrest/warrant, or maybe it's something else entirely.
The reason Westy was arrested wasn't just because he was making pedo-adjacent material in Australia. It's illegal to produce porn in parts of Australia (where he was living.). His trial goes one of two ways: They either make an example of him/his work and throw the book at him, or the charges for CSAM material (which it arguably isn't) don't stick and they simply charge/fine him for the production of porn.
Now, for the most part, porn is completely legal in the US (short of LA requiring an ID to access PH). Real rape, real necro, real sex slavery, etc. are all a crime. Obviously. You shouldn't do those things, you shouldn't host those things, and you shouldn't share those things. However, fictional art is fictional art. Regardless of medium. Making any such thing illegal violates a clear line of freedom of expression - artistic or otherwise. Forget which country it is, but they just recently made misgendering people an arrestable offense. Calling someone a he or she, or it is a basic level of freedom of speech here in the US. Regardless of how much the other party dislikes being called X thing. It's your right to do so. While there's obviously lines/exceptions to this, art and artistic expression of divisive/triggering/etc. topics also one of those things. It's legal because it's fictional, at least in your context.
Lolicon is a tricky one. Because it's so easily accessible online now. Nhentai, Hentai2Read, etc. have loli all over it. While they likely aren't hosted here, you can't really point to any prominent case in which someone reading lolicon online has been arrested for doing so. The end user is typically irrelevant. Similar to the LEA with the real thing; they aren't after consumers. They're after the creators, sellers, and distributors. But you'll get arrested if the authorities are notified. Which brings in a fairly prominent case, Christopher Handley, who was arrested for buying and importing lolicon in like 2010. In which he got six months in prison. Which is far too much for drawings of children on paper, imo. So, what does that mean for a game featuring lolicon? In theory, yes. You could be arrested for it under "obscene visual representations". But the reality that the government really doesn't care. Nor is it likely that your game will ever be widespread enough to attract the attention of a government.
In short, as long as you aren't in a country that outright bans porn or the production thereof (e.g. India), you'll be fine. Especially if you're in the US.