not sure if it’s technically fantasy as it’s set in Arthurian legend…but it feels like magical realism to me. The scene with the giants gives me the same divine yet grounded awe I associate with the genre. The Odyssean vignette style makes it feel wonderfully like a series of magical short stories. It contains two of my favourite scenes in film of all time!
A few other recommendations, many of which can also be classed as sci-fi (but what is elaborate undiscovered science if not magic, and vise versa?):
Sorry to Bother You
Arrival
Horse Girl
The OA
Brand New Cherry Flavour
Donnie Darko
Maniac