Well this seems to fall under a sort of Schrodinger Cat phenomenon. On one hand, the theory is possible; creating a virtual reality, which can be detailed as need be by those who inhabit it, has already been done. Them being aware of it, with proof or not, happens even now. Now, we might think it's just funny when VR characters break the fourth wall. But for that character, is he really aware of the fact that he's a VR character, or does he, like if we do it ourselves in real life, merely doing it as a gag, thinking it as nothing more than a meta joke? Such a thing cannot be determined until observed directly, which itself may influence the outcome.

In one way we have no way to prove that this theory is correct. It is not to say that the theory is impossible. As Arthur C. Clarke, Sci-fi author, once stated (Or at least has been attributed by the following quote), "Any sufficiently advanced technology is indistinguishable from magic." Magic, in this case, not necessarily being something as so fantastical as such things like flight or the manipulation of elements, rather, merely events and phenomenon that we have yet to fully understand or even begin to discover. In this instance, it may be appropriate to rephrase the quote as "Any sufficiently advanced technology is indistinguishable from our perceived reality."

By this I mean that our very existence could, as I've mentioned before, could be a virtual reality, albeit using technology advance enough to give us the impression of what some might call "Freedom". Some of those of us who believe that we do not have such a thing, such as our current level of AI technology not truly being free, rather merely operating within it's fullest ability within their programming, may call this "Fate". The naming is changeable, but the purpose is typically the same; Some believe because we can create a choice, that we are not being controlled by any forces aside our own. Others may think that, despite what we can do, our ultimate ability to effect the world is limited by powers that, while vague and possibly nonexistent, is merely only because the powers-that-be permits us to do so.

Also Lowkey you need to post in my RWBY RP if you're back. I'd like that, please.