Oh they definitely do. Teardown you mentioned for example simulates multiple different types of materials; wood, brick, metal, leaves; their density, buoyancy, etc; for every single block in the game. All of these react differently to your tools, like whether they'll catch on fire (on that note, game simulates fire-spread too), if a hammer can break them or you need stronger tools. Then you also have vehicles, ropes, rocket boosters and so fort.
All of these work together in a level in order to create puzzles. In fact, its such a crazy design you're very unlikely to ever re-do a level with the same solutions you thought of previously.
Another game i mentioned, Stormworks, is an open world that simulates from physics and electrical systems in fully buildable vehicles, all the way to localized dynamic weather, wind, waves (tsunamis included), temperatures, small and massive fires, etc. All interconnected and affecting you, your constructions and your objectives.
Naturally, this one isn't an action adventure game anyone would pick up and play, but it is far far more than just some "physics-based game".