I quite like how Rick Riordan does Dwarves in the
Magnus Chase and the Gods of Asgard series. They're still skilled crafters that live underground and often have beards, but they keep a few cool bits and pieces from Norse Mythology, like them evolving from maggots, living in a world that is completely underground, gradually turning to stone in sunlight, and having lots of dwarves descended from Freya, and thus being a bit taller and more attractive than the typical dwarf. They also have this awesome (and a bit annoying) cultural lore about them always naming anything they create and asking all of its "great deeds" before they use it (like a dwarf asking the name of a stool in a bar before they sit on it, and the bartender telling them that it's named Heavy-Lifter that was the stool that Thor sat upon when he beat the record amount of flagons of dwarven mead that was consumed in one sitting, or something similar to that).