I think it largely depends on what you want the NPCs to do. For example, if they will be static and just repeat dialogue / be a shop keep then you could just make them be basic game objects with an Interaction Machine component and the associated schematic. You wouldn't need to set them up in ORK at all really in that situation.
Prefabs are nice with the (somewhat) new variant feature if you're going to have a lot of shared behavior or components even if you don't use that same prefab multiple times. In my project, I have a "Player Combatant Base" prefab and then each player combatant prefab is a variant prefab of that. While I will only have 1 of each combatant ever instantiated, any changes I make to the Player Combatant Base prefab will then propagate to each of my player combatants as well. This base is where I dump all of my components like player control, nav mesh, etc.
Currently the only real difference for example is just the character mesh.
If I just created duplicate objects, any time I wanted to make a sweeping NPC change, I'd need to do it to every single object and introduce the possibility of making issues.
Hopefully that makes sense!