It really doesn't matter what it looks like - people want the functions.   If you read reviews, people don't comment on the startup screens if the functions are there - they do start complaining very quickly when there's a lack of settings like not being able to turn the music off, or to customize keys like playing with arrow keys instead of ASD and vice versa.  Just make it easy to use and clear.   Players will only spend a few seconds looking at it anyway.

Your screenshot would confuse me - because it looks like I have to press the little guy to get to the settings menu but the block in the corner looks like it could be a volume control or something.  I'm not clear on what's going on there.  The only thing that really stands out is the close button - and be careful - if that is the only thing that stands out and is clear to me - it's probably going to be the thing I press first.

it could world but people would be confuse and assume there is no options. Maybe add a icon or something for people want to interact.

Great art style, it looks fantastic! Both options have their plus points, but I think you need to pick one or the other and commit to it.

If you want to go purely text based then you could return to your original idea and tone down the detail in the background scene so that players clearly understand they are only interacting with the text. Or, if you want to go for interactive menu then make sure players won't wander off and try and click on things that don't do anything - for example, can I walk over to the calendar and click that? If the staircase is 'Play' and the table is 'Options' then consider only having those two items in the scene so players aren't confused.

Best of luck with your game!