After playing with the settings for DAYS, I finally came up with a workable solution for interior lighting not casting shadows nor catching lights correctly.
Instructions:
(1.) Add -devmode to startup options of KingdomCome.exe to unlock cvars (Steam add it to Launch Options, GOG add it to the shortcut for the game - Google it if you don’t know how to add a launch option)
(2.) Create a NIGHT.CFG file in your KingdomCome Folder where system.cfg resides (i.e c:\program files (x86)\steam\steamapps\common\kingdomcomeDeliverance)
;night.cfg
wh_e_HDREyeAdaptationEVMin = 3
q_shaderHDR = 3
r_HDRRangeAdapt = 1
; Adaption Speed below is personal preference
r_HDRRangeAdaptationSpeed = 25
r_HDRRangeAdaptLBufferMax = 0.25
r_HDRRangeAdaptLBufferMaxRange = 2
r_HDRRangeAdaptMax = 0
r_HDRRangeAdaptMaxRange = 0
(3.) Create a DAY.CFG
;day.cfg
wh_e_HDREyeAdaptationEVMin = 0
q_shaderHDR = 3
r_HDRRangeAdapt = 0
(4.) Launch your game. When night falls and its too dark bring down the console (~) and do:
exec night.cfg
(5.) At daylight (or whenever light increases and its too bright, repeat step 4 but do:
exec day.cfg