Could you imagine if this was Silent Hills? Would be amazing though I'd hate to see celebrities in SH or any horror game: I think it would hurt immersion rather than help it.
I don't think it is though. I think the latest rumor is that the 2 Silent Hill games that are currently in development are from Bloober Team (a smaller AA one) and Koei Tecmo (a larger AAA one).
Supposedly this MS-Kojima one is the the game that Kojima pitched to Google last summer, because he was interested in releasing an episodic horror game on a Cloud service, but Google ended up turning him down because they were already planning to shutter their Stadia 1st and 2nd party development by that point. Kojima then decided to pitch it to MS because they have their own cloud service with xCloud.