Yup! It's called StyleGAN 2.Is that based on the NVIDIA one?
It's possible, but it requires a MASSIVE amount of computational power. However, I read an article recently that an algorithm has been developed that allows a CPU to massively outperform GPU training, so if that becomes built into the machine learning frameworks, AI technology will be much closer to being fully democratized rather than being a tool for just the rich who can afford multple Tesla V100 GPUs (which are geared towards ML applications and are very very expensive). Until then, we only have the traditional training route...What if we train one with the Daggerfall portraits we already have? That might yield some interesting results.
So yeah, if you have access to a bank of high performance GPUs (like multiple 1080TIs), then we could train a neural network to transfer the style of Daggerfall onto generated photo-realistic faces. But it currently takes a lot of money/time to train the model first.