Essential tools and workflows for reverse-engineering assets and scripting mods

[Scott27]

I'm an intermediate programmer with a strong interest in game modding, specifically for a popular open-world title that uses a proprietary engine. I've successfully created simple texture replacements and tweaked config files, but I want to develop a more complex mod that adds new interactive objects and quests. For experienced modders, what are the essential tools and workflows for reverse-engineering game assets and scripting new behaviors? How do you structure your development environment to test changes efficiently without breaking your game installation, and what are the best practices for documenting and sharing your mod's dependencies with the community? I'm also curious about the legal gray areas of distributing mods that use extracted game assets.