Games like Typical Nightmare
Games like Typical Nightmare include No, I'm not a Human, Layers of Fear (2016), Mouthwashing, Outlast, and MiSide. We matched them by the tags players give Typical Nightmare on Steam (Indie, Simulation, Horror, Psychological Horror, and Singleplayer): closest matches first, and among equally close ones the better-known games.

No, I'm not a Human
Shared: Horror · Indie · Psychological Horror

Layers of Fear (2016)
Shared: Horror · Psychological Horror · Atmospheric

Mouthwashing
Shared: Horror · Psychological Horror · Indie

Outlast
Shared: Horror · Psychological Horror · Atmospheric

MiSide
Shared: Psychological Horror · Horror · Story Rich

SOMA
Shared: Horror · Psychological Horror · Atmospheric

Little Nightmares
Shared: Horror · Atmospheric · Singleplayer

Sally Face - Episode One
Shared: Indie · Psychological Horror · Horror

Little Nightmares II
Shared: Horror · Singleplayer · Psychological Horror

Poppy Playtime
Shared: Horror · Singleplayer · Psychological Horror

Five Nights at Freddy's
Shared: Horror · Singleplayer · Indie

What Remains of Edith Finch
Shared: Atmospheric · Story Rich · Indie

Firewatch
Shared: Atmospheric · Story Rich · Singleplayer

Outlast 2
Shared: Horror · Psychological Horror · Singleplayer

Visage
Shared: Horror · Psychological Horror · Singleplayer

Still Wakes the Deep
Shared: Horror · Psychological Horror · Story Rich

Blair Witch
Shared: Horror · Indie · Psychological Horror

Amnesia: A Machine For Pigs
Shared: Horror · Psychological Horror · Atmospheric

Among the Sleep - Enhanced Edition
Shared: Indie · Horror · Atmospheric

Tiny Bunny
Shared: Horror · Psychological Horror · Atmospheric

Fran Bow
Shared: Psychological Horror · Horror · Indie

Little Misfortune
Shared: Indie · Psychological Horror · Horror

Slender: The Arrival
Shared: Horror · Indie · Psychological Horror

INSIDE
Shared: Horror · Indie · Atmospheric