Are there RPGs where some of the character creation is partly done during play?

[Friv]

There's a small RPG out there called "One Last Job" in which character creation is done as part of the planning for a heists. Looks pretty neat, but I haven't played it.

I've played One Last Job! It is a lot of fun, but it is exclusively designed for one-shots. You might be able to extrapolate a lot of its stuff into a long-form character creation process, though.

The basic premise is that you start the game with nothing special on your sheet - just average scores in all of the 'skills' for your game (usually, there are 4-5). You have empty slots for the following things:
* Worst At This Skill - special
* Best At This Skill - special
* Legend - 2 slots
* Scar - 2 slots
* Equipment - 2 slots

Whenever you fail an action, you can write in one of those five things. You can say that you are the worst at that sort of thing, and reduce your skill at it to 1, in which case you get a plot token. If someone else is already the worst at that thing, you can say that you're the best at that thing, boost your skill to 3, and reroll.

Instead, another player can tell a story of a Legend or a Scar - a time in the past when you did something really awesome, or screwed up in a big way, related to the thing you're trying to do. I don't recall the exact rules, but I think being a Legend gives you a bonus in similar situations (instead of with similar skills), and a Scar gives you a plot token and a reroll. Finally, you can reveal a really cool piece of equipment for a reroll. Once all your slots are filled up, you can't get that thing any more.

(One Last Job also has a thing where, if your character would die, you can instead "reveal" that you've been working against the rest of the party the whole time, and become a supporting character helping the GM.)