Magic may well have been real. Healing crystals, shamanry, witchcraft, voodoo, things of this nature may have been real at one point and have since been patched out. These could have simply been glitches in the program.
We’ve all heard of glitches in games that can be exploited that eventually get patched. Could have been real.
I prefer to think we’re simply the hallucinations of a possible brain, with no way to distinguish every possible brain that could exist from ‘real’ brains that exist in reality.