The novel unfolds within an intricately designed virtual reality, eerily mirroring our own, masterfully crafted by Tony. This digital world, brimming with life and complexity, operates under the illusion of normalcy, yet beneath its surface lies the truth that the only real people are us (students and staff), and the only "real" place is the school. The rest of the world, with their backstories, routines, are NPCs programmed to interact with us and each other.
Yes, to answer your question, the abilities and magic of the characters can influence this reality up to a certain point. Especially entities like the eldritch or the fairies.