Personally, I prefer to avoid specific internal monologue in a CoG game written in a close second person. The player knows they’re riding around in the MC’s body. You know about your pulse quickening, that sort of thing.
So rather than:
“Is it bad that I can’t help smirking at that?” You think as the hood flops over your eyes once more.
I’d prefer to see:
Is it bad that you can’t help smirking at that? Your hood flops over your eyes once more as you walk away.
Or something like that. I think there’s plenty of good reason for self-reflection in a game, I just think that calling it out specifically breaks the connection a little bit, and keeping the thoughts and feelings flowing in second person feels more immediate.