I think it’s fine.
The medkit system isn’t really an less incongruous really, you still just magically bring yourself back from the brink of death to fully healthy in a matter of seconds.
I’m not sure the busywork of specifically finding these magical little boxes really helps with the illusion tbh, and gameplay wise it’s just another collectible to have scattered around the place.
I’m perfectly happy with the system and can’t really think of a more elegant solution in most situations.
having always regenerating health leads to gameplay that consists of waiting behind cover and doing nothing every couple of seconds
it's bad for gameplay in many titles and makes the combat often braindead (see CoD)
a more elegant solution (one which I already named a few posts back) is if enemies drop health.
this can be contextualised in many ways.
in my example, Control, it's simply blue little pallets that enemies drop. this works here because the game is supernatural themed.
in other thematical genres like a military shooter, the enemy could drop Kevlar plates which you can use to repair your west (CoD Warzone already works this way basically)
In hack n slays it's already used in the form of health orbs that enemies drop when killed (like in Control basically)
this way you don't have to seach for health items, you get them from the enemy you just killed, but that also means you can't just sit behind cover all day and you have to actually think about how you get there and refill your health.
this makes combat way more dynamic and combats the staleness of CoD campaign like shootouts that basically are glorified Duck Hunt