I've experimented with a very similar flow back in the days of GPT3.5. It resulted in really fun story lines, but i found that the player choices benefitted from some steering: For each plot point i generated three choices, where [1] progressed the story, [2] stalled the plot and [3] resulted in a plot twist, just these additions to the choice prompts increased playability by a lot, and prevented plot stagnation and "feedback loops".
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