First off: I love isekais where the MC actually panics as a reaction. Calm acceptance is way to BS but it gets glossed over too often. Anyways, considering every character is essentially a love project the guy customized himself, he should more than know how to handle, console, or manipulate his people. That aside, even without that this entire country was forged with him as the original founder. I doubt any of his subordinates would think lowly of a weak-ass guy who has the planning skills to lord over an entire country of people capable of one-shotting him - in other words, his mind is probably the most valuable thing in that country, just as Rushka said.
About the game and why it flopped: in other words, it's a brilliantly thorough and over-realistic VR game. Possibly the MOST realistic VR game that exists, but the gameplay is absolutely abysmal and essentially a management/idle game that should have been in a 2D environment to shine better, and where your VR experience is sitting in a throne all day without actually doing the "cool" VR battle adventure stuff. It might as well be a single-player flash game then, but perhaps the wars might make multiplayer worthwhile. Even then, since he's just playing a RTS game essentially, this really is a flop as a VR game, but could have been ridiculously successful as a typical 2D game. RPG without exploration is bad RPG, as a general rule. No wonder the dev team axed the game, it was probably more resource-intensive than their top three most profitable games, but it only had users in the double digits... honestly, that summarizes every single RTS and TBS game I've ever played. Eventually my online friends stop playing and we all migrate.