As far as horror games go, this is a lot more silly and humorous than it is outright scary, but the gameplay is fun and the unforgiving nature of the puppets chasing you still induces some fear.

Hello Puppets: Midnight Show
Otherworld Interactive · Oct 19, 2022
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“Hello Puppets: Midnight Show” is a stealth horror adventure set in the 1980s on the set of a children’s TV show. You are a master puppet maker whose prized creations--the Handeemen--have come to life and are hunting you. Play hide and seek against advanced AI that forces you to adapt and improvise.
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