Fear and Hunger is a very challenging game that a lot of people will bounce off of, either due to its difficulty or subject matter. I think that's a mistake. Here, I'll do my best to present one possible interpretation of the game's events, attempting to line it up with the canon established by its sequel.
Fear & Hunger is a horror dungeon crawler set in the dark and hopeless dungeons of fear and hunger. The game is a hybrid of survival horror and dungeon crawler genres with its influences ranging from Silent Hill to Nethack. There are roguelike elements to the game as well as a heavy foundation of a j-RPG.
All credits belong to the team behind Fear and Hunger and r/q51253 on reddit