Immersion in a video game has nothing to do with graphics, facial animations, dialogue, or UI. Immersion is seamlessness.
I would look at something like Dead Space or Far Cry 2. In almost every cutscene, you’re still in complete control of your character. It doesn’t take you out of the game in order to give you a story. No matter what, you’re still playing the game, and everything happens in one cut. It’s seamless.
Instead of hard cutting to dialogue, they could have had the 3rd person camera move over to focus on the two characters talking. And then faze back once it’s over. I would be a lot less agitated if they did something like this.
Also in those older games, you were able to pull out a map with your hand and still be able to move around. Now with Horizon Zero Dawn (and Far Cry 5), you have to pause and open a menu to look at it. THAT shatters immersion.