I was only made aware of this recently, but there's a group of developers who have been working on an open-source recreation of Daggerfall using the Unity engine.
https://www.dfworkshop.net/I've been watching videos from this youtuber's playthroughs:
The game looks great. The world is in 3D using Unity's lighting system, which creates some much needed depth in the visuals of this game. Also great looking shadows and lighting effects.
The character sprites are all the old ones, probably upscaled to work in Unity's resolution output.
But what else is really cool with this release is that it supports a plethora of mods. Some quality of life ones, some art update ones. There's quite a bit there so I'm not going to list them all.
Daggerfall was one of the earliest Bethesda games I've played (never finished), but it paved the way for a lot of new Bethesda titles.