You know that I am not a gamer, and remain ignorant of games to the degree you might expect.

But: when I read this, I said to myself "character arc is something an author imbues a character with because they know the story, and what will happen, and how it ends. As they write the story, they may change any or all of those things. How can a character in a game develop a meaningful arc, when the acts that are to come, or unfold, are unknown?"

How would that "work"?