I love towns in video games. These are my favorite part of RPG's. You essentially get a nice safe hub to hang out in a way from whatever crisis is going on outside the boundaries. Unless there's a town crisis or something too.
Below is a photo of Beauclair from Witcher 3. It's so pretty.
Also, honorable mention to Jackson from Last of Us: Part 2. I really liked the idea of a comfortable (somewhat leisure) town in the middle of a hellish apocalypse.
It's Mossui Town from the Pokémon Scarlet/Violet DLC, mainly because my favorite Pokémon character lives there. I also would like to live in a small village some time.
For some reason I love Mossdeep City from Pokemon r/s/e. Olivine City and Ecruteak City from Pokemon Crystal. Even Cherrygrove City with its little pink houses and chill vibe.
I remember a liking alot of cities from Pokemon x/y despite not being a big fan of the general game. (I preferred b/w).
Pokemon Colosseum had a cool town called Pyrite Town.
Pokemon was obviously a large part of gaming for me... Nothing else comes to mind at the moment though I know there are other games I've played that had towns in them.
They're my favorite part of RPGs too and they often make or break games for me. I always enjoyed the obligatory "entertainment town" and "biggest city in the region" places that every Pokémon game seems to have. My favorites are Hearthome City, Nimbasa City, Castelia City, Jublife City, and Goldenrod City. Cities in Pokemon that went for amosphere were great too like Anville Town and Ecruteak City.
Tokyo in Persona 5 was a lot of fun to explore as more areas were added. Royal's new areas were a definite highlight. All of Earthbound's towns and cities were a delight with distinct music, fun NPCs to chat with, and different theming. Mother 3 didn't have nearly as many towns which disappointed me, but seeing the main village develop and modernize over the course of the game was interesting to see and something I would love to see in more games.
Terry Town in Breath of the Wild was so satisfying to help build. Gathering materials to develop it and finding NPCs to help move in made me feel more connected to the game. Most of the sidequests in that game were underwhelming, but that one is among my favorites in the series.