I have never been able to make up my mind.
Why Game: In King Orange's flashback, they're advertising MC as a game, as if they control everything and have the right to let people in the game world that they made.
Why World: The mobs appear to have emotions, and there are many interactions that are impossible in vanilla Minecraft.
My theory is that Minecraft is a separate dimension from the Outernet, and that a company in the Outernet took inspiration from it to make the game. What do you think?