I don't think the original is that bad honestly, but I do install reshade in just about every game I play so I can understand. Bottom picture has too high contrast though and levels need adjusted.
It's a matter of taste. I set the contrast so that the brightest pixel in the scene is 100% white, and the darkest 100% black, so there is the highest possible dynamic range (and nothing is over or underexposed). The vanilla kind of looks like there is mist everywhere since it's so washed out.
The first one looks natural to me. The second grade looks like a 1st year film school grade where they think the full range has to be used at all times. In a soft well lit room the contrast would never be that high.
The intention was clearly to make it look like a warm interior, adding all those grungy green tones make it look like she's standing by a window. I dunno the context of the room, but number 1 looks way better to me..
Edit: Final thought - crushing blacks like that, from a game perspective means you may miss details that may have been meant to be seen. But power to you! Options are always better.