It's a specialised discussion that I've definitely had more than once in fandom spaces, so I'd rather use a tag with no ambiguity at all if it can be found.

At the moment I'm leaning towards approving "Magical Realism" but adjusting "Low Fantasy" as described above, because I think the divergence between different meanings of the latter is more profound, but I've definitely got all of this on my list of things to ask for feedback on and then Think Very Carefully About before next round.