I'm currently reading Hazelthorn by CG Drews and I need a book with the same vibes! The dark, gothic atmosphere mixed with bits of fantasy and horror is perfect. I don't like anything too extreme, straight up horror is not my thing, I definitely like whimsy. A few other books like this I've really enjoyed are Don't Let the Forest in also by CG drews (I actually enjoyed this more than hazelthorn at the point I'm at), and Compound Fracture and The Spirit Bares It's Teeth both by Andrew Joseph White. I'm also planning to read Hell Followed with us but I just finished Compound Fracture so I want a break from his work for a bit.
As for queer rep, anything works for me! I just like seeing the representation in books (although when I say this I don't want, for example, a cis bisexual female lead who ends up with a man. Of course nothing against bi women with male partners, but I would prefer a queer relationship. Or if it is a straight relationship, a genderqueer character in that relationship.)
Anyway thanks for reading!