So what's correct here?

I like it when B happens in pokémon and it just barely saves you from residual damage such as sandstorm.

D is the only correct answer

dota

Only if the game is set to "Easy mode"

It really depends on the game, because a full heal or even +4hp can be a big deal in a game with limited healing options. The frequency of level ups also plays a factor.
With no context, however, I personally like D, it adds a bit of celebration to a level up and can sometimes save you from death

C.

A

All of them, except A are accpetable.
Which one you choose depends on the systems of your game, naturally.

B

Depends on how healing works in the game.
If healing gives XP, then C.
If healing doesn't give XP, then B or D.

B or D depending on the game

Why don't you think A is acceptable? Your health percentage stays the same. Seems good.

it's either C or D depending on gameplay mechanics
in a multiplayer competitive environment, C is the only fair option
in single player games, or co-op only where leveling up happens less often, D serves as a reward for the accomplishment, but it's not mandatory

A and B are just not worth it and seem they could cause problems in development

C. Level up equalling full restoration is too generous.
A and B don't reflect that your Max HP is the only thing that should be getting boosted.

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D. Level ups tend to be so rare its just nice to have these full heals from time to time grinding mobs.

D. It keeps the pace of the game up. You're going to heal anyways, this just saves you the time.

D, but you level up only in designated spots, like a save point or a tavern

D always provides the best experience as a player, being saved from death by a perfectly timed level up is only slightly below nirvana.

I'm fine with every option except A

Either B or C is fine

B, if you were at full health and leveled up you should still be at full health

Who cares about how much Harry Potter or whatever I got? Tell me about my new emotes.