Depends on what you mean by 'modernized'.
There's a lot of pretty good JRPG's still being made in a more 'classic style', but none with the sort of presentation values of mainline Final Fantasy games. Which is really the big shame here. It's not that us fans of classic-style JRPG's aren't being served anything, we're just not getting the best dishes anymore like we used to. We're now just kind of more second class citizens, especially by Square's perspective, only deserving of lower budget efforts.
Still, I'd definitely recommend Octopath Traveler II and Chained Echoes very heavily, as somebody already suggested. And beyond that, there's still quite a lot to enjoy that fit most of your criteria: Persona 4/5, Bravely Default series, Trails in the Sky series, Triangle Strategy, The World Ends With You(and sequel) and Yakuza Like a Dragon(for something different).
Xenoblade series is one of my absolute favorites, but the side quest stuff can be very generic at times(though also quite good at others, particularly in XC2 and 3). Still, these are the games that I feel best capture the magic and epicness of classic Final Fantasy games, albeit with very different structure and combat systems for the most part.