Idea: add a flickering "Un" in front of "Paused" during events.
I was watching a content creator play the newer version, one whom had played the earlier versions, and it took them a fairly long time to realize/remember that pausing won't stop the game during events.
I think adding a clearer indicator that the game isn't actually paused may be worth more terror when they realize immediately understand that for some reason pausing isn't "pausing", and don't yet know how events work. As opposed to pausing when they see something scary and being scare, but moreso confused, that pausing is "broken".
Granted, I know the game fairly well and know how events are supposed to work. So my opinion on what would be better for terror and intuitiveness is already tainted.