Party member death in BG 1&2 could be pretty rough yeah, especially in 1, and there were plenty of effects that prevented resurrection, even. Plus, characters dropped all items on Death, so picking everything up and re-equipping it after resurrection was punishment itself, haha.

Death is basically a non-threat in D&D 5E, but I haven't looked into whether Larian has added any house rules to make it more punishing. In general I'm not a huge fan of the 5E ruleset so we'll see how I feel about BG3 combat as I get further in. So far it seems more like death is handled like it was in Divinity, with plenty of Revivify Scrolls already.

I turned off Karmic Dice on principle, but maybe that was a mistake. So far the biggest challenge has been terrible luck. I've missed so many 80%+ attacks, often in a row. Feels very frustrating.