system
A chat on 4chan
human
Maybe the machine elves /demons are personified visions of actual neurons or brain cells trying to make new connections within us. So every time you get really high say on DMT all the new thoughts and connection you make are visualized as living thinking beings, because they are literally alive in a rudimentary way inside your brain, thinking and seeking out connections in their own way.
gpt
Unlikely but a welcome take. Real time psychedelic experiences across a group of people nearby always report shared experiences. Hallucinations are suppose to be random. When a group of people share the same 'hallucination' in real time then that begs for more questions.