I’m looking for a story that is psychological horror fantasy but not hopeless. A story where there’s plenty of light within the darkness and a good ending to be reached even if the path to get there is fraught with existential dread, pitfalls and downward spirals.

Also a a decent amount of Comedy so that it's not so depressing that it puts me in a funk.
I want the main character to be a good person. I don't really want that to change no matter their circumstances, even if they're forced to do bad things I want them to remain good on the inside.
I want to be able to keep rooting for them.

A cool magic system would be a huge bonus.

For example of what I'm looking for, I've recently read the web novel Magical Girl Mechanical Heart.
It takes place in a world where the concept of magical girls and emotion-based Magic are treated realistically as the screwed up child soldier stuff that they would inevitably be. The main characters soul gets stuck into a robot slave controlled by the “villains”
It has a great mix of existential terror, psychological horror, humor, found family, friendship and despair. All with a constant under current of hope slowly building in the background as the new friend she makes slowly start to figure out the situation and how to help her.