Here are some NPC-related thoughts I had on how to make Sacrament seem more alive:
Construction Projects
Building projects could have actual construction sites with materials and tools lying around and NPCs/Danos working there. Players could manage projects at a planning table at Danos’ place even when he’s busy at a construction site and contribute materials there or directly at the project site.
Workers on a site could have some dialogue referencing what they’re currently working on, e.g. something like “Broke my back at the quarry before, now I’ll break it lifting timber” when building a roof.
With multiple projects going on, maybe you could catch Danos’ checking up on the different sites, mumbling to himself about the progress of the active projects.
Construction sites of the longer projects could have visually distinct stages, so that when you leave town for a while after starting a project you’ll see that something happened while you were gone.
At night, Danos could return home (and brood over the planning table if it exists), and the workers could go to the inn or pantry.
Some mostly cosmetic projects that affect some NPCs’ attitude towards the player might also be fun. For example, a homeless shelter could make the poor souls of Sacrament more amenable to the player, or sewer repairs could put the shit-shoveler out of work after which he’ll hang around the inn.
Shops
It’d be nice to see the shopkeepers working around their shops, e.g. stocking shelves, cleaning tables, prepping ingredients, serving food at the pantry or kicking out drunkards at the inn.
Maybe they could work at crafting stations in the shops that have them, moving to the side when the player comes close or talks to them, and saying something like “Need to use this? I was pretty much done anyway.”
If they’re busy doing something else, players could access the shop menu by interacting with the counter and the shopkeeper could then stop what they’re doing and move behind the counter.
Another thing would be NPCs browsing the shops, possibly also with some background dialogue like haggling or complaints about quality.
Miscellaneous
Right now, characters often drop the one same line of background dialogue when passing by which can get old and pretty weird when too many NPCs talk at once (e.g. when crossing the town square). It’d be nice if NPCs varied their lines and would talk over each less; not never but also not as extremely.
Lastly, as Victoria already mentions Winnick might find a use for her maybe players could find her some work instead. She could work at the pantry or the inn once they’re constructed (or some other future building). If not that, she could work for the player, stocking/emptying crafting stations in your home from/to the chests
That’s what came to my mind when walking through town anyway.
Keep up the good work!