Even if it does it won't matter, games as they are now, and even ones from decades ago, are still more than enough to suitably affect people in ways as if IRL would. Your example of Arachnophobia being one, similarly games with "spider-free" modes now to avoid those with arachnophobia having issues along those lines, and probably any other similar phobias like moths, birds, and whatever else. Even when the graphics aren't that good it can still be enough to affect someone and it's a long way from realistic at that point so improving those graphics isn't going to do much because the responses already happen.

You might get people arguing whether it helps with IRL actions or could help train/run IRL situations via drones and turn gamers into unknowing remote operators of killer drones, it's been done in sci-fi before, but then you don't need advanced graphics for that, and in all probability non-realism might even help since it detaches the experiences from IRL consequences.