Ah... In the power point upon arrival, surely they mentioned the Nexus Code, yes? That they rescue us from this code - that they pull our code into the city from there. Though we are certainly real, they would have us believe that our true bodies were likely destroyed. In that sense, we are every bit as much a technological advancement as our surroundings.

[It's still a little beyond Kaoru's understanding despite being around for so long, but at least the explanation's gotten easier to give over the months.]