It really reminds me of the dynamic music used in Doom (2016).
In fact my favorite game, Rez, has a central conceit that is much closer to this. The heart of Rez is a 32-channel MIDI engine which continuously plays the game's background music; however, which channels are "active" is controlled by a bitmask that varies depending on which phase of the level you're in, allowing for a constantly shifting sohndscape. Then, additional music that arises from game events is mixed on top of that.
In fact my favorite game, Rez, has a central conceit that is much closer to this. The heart of Rez is a 32-channel MIDI engine which continuously plays the game's background music; however, which channels are "active" is controlled by a bitmask that varies depending on which phase of the level you're in, allowing for a constantly shifting sohndscape. Then, additional music that arises from game events is mixed on top of that.