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From what I've read about it, DuckDB comes close. Regular files, like sqlite, but pg functionality.

If I am not mistaken, DuckDB is suitable for columnar analytics queries, less so for multi-column row extractions. Which PG-like functionality does it offer on top?

DuckDB does aim to be Postgres compatible from a SQL syntax perspective, but you are 100% correct that it is not optimized for individual transactions. I'm a huge advocate of DuckDB, but strongly consider your life choices if you want to use it as a transactional database.

is there something like duckdb but suited for transactional database while still being postgres compatible

It might sound confusing but I wish to genuinely have something of a simpler postgres (in sqlite?) and then later if need be, i could migrate to postgres I suppose.

No it’s not ”pg functionality”. It’s close to SQL standard compliance but not close to what Postgres has to offer. Also, single transaction writing at a time, in-process etc.

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