[Sugestão] Código refatorado

Segue código com dois métodos em guess e uso de enumerate() ao invés de index no while loop (obtido com o plugin Sourcery, pq eu jamais saberia disso):

#!/usr/bin/env python3.9


def goodbye():
    print("\nGoodbye, then...", "\U0001F984", "\n")
    print("***" * 10, "\n")


def want_to_play():
    while True:
        answer = input("Type [y] for yes and [n] for no.\n\n")
        print()

        if answer == "n":
            goodbye()
            return False
        elif answer == "y":
            return True
        else:
            print("Just y or n, buddy.", "\n")
            return False


def play():
    already_played = False
    hanged = False
    success = False
    secret_word = "banana"

    print()
    print("***" * 10, "\n")

    while True:
        if not already_played:
            print("Welcome to Hangman!", "\n")

        if not want_to_play():
            break

        while not hanged and not success:
            guess = input("Guess a letter: ").strip().lower()

            for index, letter in enumerate(secret_word):
                if guess == letter:
                    print(f"Found {guess} at position {index}")


print("Game Over!", "\n")

if __name__ == "__main__":
    print("***" * 10, "Hangman is being run directly!", "***" * 10, "\n")
    play()