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This is the only similar game that I know of. And it's mostly a copy after Loop Hero, just with a bright fantasy theme. Of course there are some differences and additions, like the possibility to combine 2 items of the same type and rarity into a better higher rarity one.
Of the two, I prefer Loop Hero more but Heroes of Eternal Quest is still pretty decent I believe, if you're itching for more of the same gameplay loop in a different coat of paint.
https://www.nexusmods.com/loophero/mods/13