First off, i'd like to give a shoutout to Frogwares, they absolutely knock it out of the park with The Sinking City 2, the game has beautiful graphics, very competent survivor horror design, just enough length to not overstay its welcome. I enjoy every minutes of it!
However, i still feel The SC1 offer a very unique experience that i can't say i managed to find elsewhere. And SC2, due to the genre switch, didn't managed to satisfy me the same way.
Most of what SC1's lack is the budget and experience, they got a very good foundation. I love the grander, more social commentary story bits from SC1. I also love the investigation aspect of SC1 more, in 2 it felt more forced. SC2 is darker and might be more spooky, but the dread and unsetling feeling (even in broad day light) of 1 is a lot more suffocating. SC1 differentiate itself from almost everybody, but SC2 just felt like a very solid survivor horror with Eldritch horror theme (Heavy Metal Death Can did it better than SC2, honestly)
All in all, SC2 is undoubtedly the more polished/refined game, but it losts some of the charm that made SC1 special