I think that would actually be really cool. You’re walking through Whiterun and you hear some NPC saying “Did you hear, some guy just ate the soul of that dragon that attacked us.” “What? That’s ridiculous. Where are you hearing these dumb rumours?” “No, really, he killed the dragon then just sucked its soul right out.” etc. etc. An LLM could at least make a conversation like that sound semi-plausible, and it could go on as long as you are listening. Then as the game goes on the rumours just get more and more wild. “I heard he can transform himself into a dragon and breathe fire.” “Yeah, well I heard that he’s the god of all the dragons sent to Tamriel to help them kill us all.”