Probably rare because the young protagonist who over-judges the severity of his minor problem, gulliblly starts on a quest where he increasingly suffers worse, finally concludes the actual solution is to confront his problems with swift and blinding violence. I read it so many times I can still recall a good portion from memory.
My personal favourite was "Stig of the Dump", which still holds up today, unlike many from my childhood.
Matthew Cordell is awesome. "Cornbread and Poppy" are cute, "Evergreen" is fun, but check out his whole catalog. Probably my favorite active author/illustrator.
"Nobody Likes a Goblin" by Ben Hatke
"The Little Wooden Robot and the Log Princess" by Tom Gauld
"The Little Island by Margaret Wise Brown" under the pseudonym Golden MacDonald
”The Dark Tales of Lillebror Rabbit“ by Jonna Björnstjerna
"Les P'tites Poules" by Christian Jolibois
A little older, Ursula LeGuin is amazing, "A Wizard of Earthsea", "Catwings".
As I couldn't find those books - I created a business for it: https://www.storystarling.com/en/showcase
If You Give a Mouse a Cookie - the original is by far the best of these.
Ramona Quimby series - Beverly Cleary
Iggy Peck, Architect (+series) - Andrea Beaty
Beast Feast - Emma Yarlett
Dragons Love Tacos (+ 2) - Adam Rubin
The Princess in Black (+series) - Shannon & Dean Hale
Don't Let a Unicorn Scribble (+series) - Diane Abler
The Camping Trip - Jennifer Maan
Maddie & Mabel (+series) - Kari Allen
I Love You Stinky Face - Lisa McCourt
Authors that were always good: Arnold Lobel, Sandra Boynton, James Stevenson
And don't forget to check https://www.betterworldbooks.com/ , they are affiliated with the Internet Archive and they don't show up in shopping searches.
To add to your list: anything by Julia Donaldson. The Gruffalo, Super Worm, Room on the Broom, the Whale and the Snail.
Perennial favs when my kids were 3-5
The only one I didn't have is Yertle The Turtle
When I got a bit older I really enjoyed the Narnia books by CS Lewis. And The Belgariad by David Eddings.
I read a lot, but many titles are probably not available in English.
Harry the Dirty Dog series
Amelia Bedelia series
Little Toot
Katy and the Big Snow
Tikki Tikki Tembo
Eloise
Babar series
Others from Weekly Reader - including Gus was a Friendly Ghost, Be Nice to Spiders, The Mystery of the Great Swamp, and Mike Mulligan and his Steam Shovel
Later
Stuart Little series
The Mouse and His Child - Russell Hoban
A Wizard of Earthsea: A Graphic Novel - Ursula K. Le Guin, Fred Fordham
The SAS Survival Handbook - Lofty Wiseman
They more or less all cover the search for being self winding.
The Monster at the End of this Book
The Little Red Caboose
Favorites to Read to Kids:
The Hiccupotamus
Dear Zoo
The Sneetches
Mercy Watson to the Rescue
Pete the Cat (I Love My White Shoes or His Four Groovy Buttons)
Favorite Authors: Mo Willems, Sandra Boynton
The Skull (Jon Klassen)
The Way Things Work (David Macaulay)
Animalia (Graeme Base)
Nanette’s Baguette (Mo Willlems)
The princess and the Pony (Kate Beaton)
Frederick (Leo Leoni)
It was one of the few books I actually remember enjoying as a kid.
It is hard to say favourites without a target age.
The Owl and the Pussycat
Goodnight Moon