Thus my point about lampshading.
Let's run with the thought that the good ruler is good. Ok. Now, is everyone under that ruler also good? Because everything they do is ultimately his (or her) responsibility since all of their power derives directly from him. Are all of their underlings also good? So on and so forth. Whether you are a "ruling council of lords" (Where exactly did they derive their title from anyway if there is no monarch above them? Who made them lords?)
Lord in this case simply means person on the ruling council. They
apparently come from all walks of life and are non-hereditary but chosen as a person of influence when there is an opening on the Council.
or a single monarch, the buck stops with you.
Or a democracy. In Ancient Athens the citizens democratically voted the death penalty for Socrates. The buck stops with that democratically enacted decree.
The buck stops with the rulers whether they are a monarch, an oligarchy, a republic, or a democracy.
It doesn't really matter what the exact form of government here is.
Right, to an extent. Rulers/ruling bodies make the rules.
They're all autocratic dictatorships. At best you could call them anti-democratic. The populace has no rights, and any laws are made from decree. IOW, a setting that makes places like North Korea look like a bastion of civil rights.
I do not know what you mean by autocratic dictatorships here.
Governments vary in form greatly and in the level of power they exert and what rights they respect or not. Even monarchies can be absolute central powers or weak symbolic figureheads or a variety of places on a spectrum in many dimensions.
You are providing no differentiation between democracies and non-democracies here.
Rights are not dependent on whether you vote in leaders or not. Jumping from the buck stops with the rulers to they are all autocratic dictatorships worse than North Korea is a huge jump that you seem to feel is self evident but does not seem to follow.
What rights there are is going to depend on what the system in place is and the specific culture. This is often rarely defined for fantasy settings.
In a fantasy game with a mythic romantic pseudo-medieval flavor this can mean a variety of things from full modern society with an overlay of platemail and people with the title king or lord, or a full on historical medieval based society, or a different system entirely because of magic and gods or just because fantasy and the sky is not the limit. This can vary for things like Waterdeep, different DMs could run Waterdeep by the book and portray it as a mostly modern base with a light overlay, try to match historical guilds and nobility models for a coastal trade hub city state, or play it as a fantasy society different from both. There is a lot of ways to go with a D&D setting.
There is no must on how it must be in a fantasy RPG setting.