We have been there for decades. Quite famously Princess Fiona in Shrek over 20 years ago had to be stylized because her original model was too uncanny valley.

We're mostly past that though. There was a period that made people feel strange, but modern games the characters are close enough that we can empathize with them, and we don't think there's something wrong. There's still some improvements to make, especially with how light interacts with skin, but it's close.