I love Company fo Wolves! And I find Tale of Tales absolutely stunning. I loved to read folk European fairytales as a child and they can be really imaginative and twisted! Tale of Tales captures this perfectly. Some people complained of wooden, basic dialogues and lack of background of the characters, but this is exactly how it is in this kind of fairytales, you do not get to know much, and the director decided to amplify the story visually, not by adding extra information with dialogues or explanations, as it would not be a fairytale anymore. I seriously think this film deserved much more success.
Other dark folk tales films I know, I would advise The blood on Satan' s claw, and maybe also The archane enchanter (by Pupi Avati).
Thank you for all the great suggestions. I wish to add to the lists: Jean Cocteau's version of Beauty and the Beast (1946) this was made in B/W ,but in my opinion is the best version due to you have to watch everything on the screen. The scones on the walls move ,plus hands on the walls open doors etc. It is a true fairy tale.
I only fully realised whilst watching this how powerful dark fairytales are. One of my other real favourite films of all time is Pans Labyrinth and I remember seeing a quote from Guilermo del Toro which from memory he said something like "If you can make people feel something on the subconscious level it has a bigger impact than if they feel it on the conscious level". I may have got the quote wrong but I think it was along those lines. I'd appreciate it if someone knows the actual quote.
But essentially this made me realise I need to see more dark fairytale type films.