Why is everything so muted? The entire image on your mod is merged into lifeless picture and the removal of dialogue light caused the effect that I feared: Faces look simply flat and uninsteresting. You can see this on the tavern fight cutscene, where on vanilla you can see how the facial expressions on the characters are highlighted by the lighting, even if artificial, while on your mod its just dark and muted. The subsequent dialogue with Yennefer has the same issue, you simply cannot see the details on her facial expressions, clothing or in any of the Main Characters.
In Kaer Morhen the shadows have been brightened so much that in exterior shots it looks incredibly flat. Even if some shots, especially the ones where you show the rain at night do look "more realistic" the end result is incredibly muted and lifeless and I very much prefer vanilla in that regard.
Is vanilla perfect? No. Are there dialogues where lights could be reworked? Absolutely. But I wouldn't say that removing all lightsources in dialogue is an improvement, especially when we can tweak the intensity for them at a TOD level.
I did something similar and up until I did, I was not enjoying many cutscenes where fake light sources or custom cam lights were present.
The main issue with those fake lights is not so much their presence, but extreme inconsistency. You can have the same cutscene, where Geralt appears in bright light, then, without changing location and position, he suddenly appears without any light. Or you can have a story cutscene with fake lights, then have a regular dialog scene afterwards with same characters in same location, but suddenly no lights present...
Besides, all this criticism from people who never even get to see accurate imagery is pointless... As I have stated many times, most people do not even have calibrated displays or think some downloaded ICC profile will provide them with accurate colors and that is not the case.
What you see and what others see on their displays is not likely to be the same image unless your display and the original source display, on which the mod was developed, was calibrated.
Then there is the hardware. Your average TN or IPS display will always show a flat image due to low static contrast ratio and dark details will always be crushed due to poor black levels. The same exact scene on a calibrated OLED or plasma panel with 40000:1 or better contrast will show you much more detail and depth.