Arcanum was kind of pro-modernism and proto-woke to begin with, lots of RAYCISM IS TERRIBLE and MUH FAKE RELIGION themes in the game.
Liberal, you're smarter than this. I'm not saying the developers weren't making the game with some of these intentions or mindset, although according to Tim Cain many developers didn't fully agree on what they were doing and didn't share the same vision and that's how you got so many different themes in there. Troika was located in California after all, so no, I'm not going to say you're entirely wrong. What you lack is nuance.
Let us examine your take on the religion as depicted in Arcanum for example. There are altars which you can visit and get tangible boons from, there are sorcerers that have a highly developed cosmology and a system of functioning magic, you can literally speak with the souls of the dead. So as far as all that is concerned it's not a materialistic setting. What you probably have in mind instead is the Panarii religion that you get tangled up in, where it is revealed the guy you're supposedly a reincarnation of is actually still alive and what he said at the time was ritualized and misunderstood over time until thought divine. Maybe that's fedora tipping, or maybe that's Lucius Caecilius Firmianus some three hundred years after the death of Christ writing about the pagan gods being kings that were deified. Was he a modern? There is objective and measurable good and evil in this setting, that plays into game mechanics, without the superfluous order and law dimension of D&D, and the villain or potential nemesis turned ally, goes on a gnostic rant about how manifestation is inherently evil and how he found this to be the case after descending into the Hades or Hell/Heaven of the setting.
The issue of racism is likewise not very straightforward. Some races have higher INT than others, for example, and the game tends to portray racial archetypes, even if there might be a twist or two on that, so as not to have us suffer bland characters. Like the dwarf companion Magnus that is alienated from his people due to urbanisation, but at the end of the day is a dwarf first. I remember that the first time I played the game I left a quest alone for long enough, and I think it was Tarant that had been laid waste by Orcs, and they had mass murdered everyone. Dark elves are evil, orcs are stupid but strong, gnomes are really plotting and scheming, Humans were all White. Of course there are stances presented within the game against racial tribalism, but that does also go with the period, I don't know if you've read many books from the Victorian era, but that's not anachronistic. It's more of a problem that with the benefit of hindsight, looking at what London for example turned out like, or even California, after following these humanist and progressive egalitarian principles to their logical end led to, you now find it unpalatable.
But isn't that what the game is all about? It's your Tolkien-esque fantasy world at dawn of an industrial age with all of what that entails, and the shrines to the old gods lie forgotten in the dark corners of the world. It's a world of displaced dwarves and orcs and of fading magic. Tarant the cosmopolitan urban metropolis thrives even as a large part of the city is falling into criminality with racial gangs in its slums, meanwhile Dernholm is falling into neglect, with its armoured knights and more feudal way of life, the world of Tolkien dying out and being replaced with rationalized and efficient living. But towards the end of your adventure you've already seen what lies waiting no matter how much progress there is, when you visit the sunken ruins of Vendigroth, laying buried in the inhospitable sands, echoing the buzzling streets of Tarant but now silent, faded and rotting newspapers spelling their fate.
Arcanum isn't a game about religion being fake, or racism being bad, it has so much more heart and soul than that.