@fanghue Notably in the novel Elf King reveals that the fantasy world isn't some sim, it was a real world that was sliced into thousands of pieces like "cheddar". Each run is through one of those pieces.
It's not really dwelled on and Kang sadly doesn't call out the staff on it unfortunately, despite making the staff utter hypocrites to lecture Kang on "morality" when they've chopped up a world and condemned the fragments to endless loops.