Games

To add another point to the discussion: a lot (the majority?) of "fake" collision detection isn't there because of hardware limitations. It's there by design.

Take a look at 2d platformers. They're about as computationally simple as you can get. Yet they're still full of "unrealistic" physics. Coyote time, double jumping, air control, collision boxes that don't match the sprite, gravity isn't consistent, you don't stagger if you slam into the wall or floor, etc, etc. This is on purpose, because realistic does not mean fun. "Realism" is not a magical word that makes games better.

There have been games where, to use your example, your character's sword bounces off anything it hits, rather than clipping through. The reason most games choose not to do this is because it's usually pretty annoying. The game's intended experience is most often to let you play as a badass experienced warrior. The kind of person who doesn't fumble their blows.

Realism is just another tool in the designer's toolbox. An example of more "realistic" physics being used deliberately is Shadow of the Colossus. If you swing your sword at a wall, it bounces off, and your character staggers back clumsily. This is because the game is specifically about playing a character who is not a badass, but an inexperienced nobody.

There are high-polish VR shooters, like Half-Life Alyx, Boneworks, and Vertigo 2, which obviously care about where your hands and other body parts are. Boneworks attempts melee combat, but it's pretty janky. In Half-Life Alyx, you use your hands to rummage around junk to find resources. In Vertigo 2, if you get hit by arrows or thrown spears, you have to pull them out of your body, and there's a section where you steer a boat.

Well, you already say it: physics games. They NEEDS to be accurate with their collision detection since they relay on it to the game to be fun. The majority of action games don't need such accuracy cuz THAT IS NOT FUN. You know how frustrating is to swing your sword in a narrow passage in Dark Souls to it to bounce on the walls?

Also, is a extremely demanding process to calculate such precise collisions.

Exanima, it's mostly a testing ground for a game the devs want to make around this concept. It's a good time, and also exactly what I think you're looking for.
Not to bury the lede, it is a fairly full featured action game, but there's not really a story element at this stage.
https://store.steampowered.com/app/362490/Exanima/

You might like Overgrowth, it has a very physics-driven combat system.

The reason games don't do combat with physics is because they tend to be insanely janky and inconsistent. You wouldn't want to swing your sword and have it get caught in something then die.

Kerbal Space Program. But that's not "action", more like simulation, and, the entire game revolves around accurate, realistic physics, since it models actual space travel. So accurate to the point where you can build and test crazy real world concepts like the machine from that company that wants to put stuff into orbit by spinning it and then flinging it up through the atmosphere at hypersonic speeds.

Plenty. It's just that it's not often used because it's more computationally expensive.

Usually it's just collision hulls for hitboxes instead of per-face collision. But even if your sword passes right through the enemy, it's still doing collision detection to identify that it's passing through the enemy. It's just that animations are rarely complex enough to account for all the possible ways you could hit an enemy.

I think BeamNG.drive fits your request. I'm not sure how accurate the model is, but it tries to model car crashes and damage based on a bunch of factors.

Mount and Blade 2 Bannerlord's combat physics are awesome compared to the scale of the battles. Example: on foot, striking with a big hammer, you won't pass the shield but if you swing from a horse at full speed you will. + modsupport

This is not standard for a ton of reasons, just look at TABG. Boneworks/BONELAB are two more games that behave somewhat similar, but they're both VR titles.

Half Sword, Exanima, and Blade Symphony might be the games you're looking for.

are you talking specifically about melee combat?

things like beamng, arma, toribash, receiver, poly bridge, are all very much physical

Valheim falling trees (tree falling can kill), boat with wind and storms, siege machines in latest ashlands biome.

There's a guy who was working on a fan build for alternative to Tribes Ascend that had some really elegant collision stuff going on to address what we called "dead stops"

Kingdom Come Deliverance

Arma and Tarkov has weapon collision. If you get too close to a wall or obstruction your weapon get moved.

Hellish Quart?

Have you tried Teardown? Is that accurate enough?