Hello, still working on the second game, no game name yet given, but likely Banished Monsters 2 (BM2) for the time being, or something like that. Anyway, that is not important, I haven't posted any update in a while, so here it is, and definitely not me making sure that my art has a callback point for legal reasons in case it gets stolen, or leaked online.
I am still somewhat undecided if I should make it a second game or sell it as DLC, but I will figure it out when the game is done.
My overthinking aside, a lot of the music for BM2 had been improved as I am making use of non-specific generative AI to make "my" music. I do not care how this is perceived, as I am aware that AI tools are perceived as negative by most, so I choose not to care, because it saves me time, money and gives me a lot of editing power over the final product as I can direct the music in the direction I want.
Lastly, art, a lot had been added and worked on to improve the characters that you will find in the game. No LLM or AI was used for the making of the art besides reference images, like "generate me a mushroom from top-down because I am too stupid to envision and draw it rn" and so on, if I couldn't find the angle I want on your generic search engine. 
As you can see the races are all over the place, because I have further developed the story of Fomoria and Rabbit, a little bit more, for humans and aliens alike:
I added also added generic, but buff humans. I don't know why some games do the "muscle girl" so wrong, but I decided to make my own and actually make her cute, and I do think she ended up looking cute. I do like cute girls, so I will likely make a few more when the game is finished.
Furthermore, I had drawn a lot of environment, shops or hubs that I intend to have them give quests or just sell items specific to their area:
And made an overworld map to some areas, this one is the most finished:
Which you can visit in a more zoomed in view to interact with the characters as part of a continuation of the light novel format from the first game, it's still a WIP, but it shows the basic idea of the concept.
Thank you for reading and do understand that the game is not finished and will still take a lot more time before it is done, as I am still working on combat and environmental polishing.
Disclaimer: The visuals presented are prone to change and do not represent the final product.