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Probably average wasn’t the right word, as I don’t really think sidequests are generally good storywise in games. I wanted to say “mediocre” but thought that sounded negative. I meant that I didn’t find anything special in them, neither bad nor good.
But for examples of games with sidequests I think are good (storywise), I can think of only The Witcher 1 and 2 and Yakuza 0 (all of which I haven’t played in a while so I might only remember the good parts).