
This is sort of confusing, but no, they don’t know it’s a game. First, from the history episode, it is revealed that the NPCs are under the impression that they are granted a ruler, likely from a higher power (the game developer). They are celestial beings who have 6 lives while they have a mere 1. If they deem the ruler unworthy, they are allowed to assassinate them 6 times to get a new one. That, or they must tank the empire. So, that clears up what they think the players are. Second, they don’t know you can (or could) log off. The ML is as angry and betrayed as he is because he thinks the MC is real and has runaway in game. He threatens to kill his friends because it pisses him off that he ran away to live in hiding with them. Third, the dukes are not allowed to be in the banquet hall during banquets, only in the box seats. According to the game, this is to ensure privacy. This is likely so that rulers can talk about game strategy and whatnot without in-game characters hearing them and finding out. This is what the engineering empire king tells the MC too, stating he was upset they couldn’t talk more at the banquet without their subjects and dukes present.

Wow. It's very confusing, i forgor what's the name of the other BL manhwa but the ML also a player that's forced into the game, but every time he mentioned anything that related to the real world it will automatically censored to all the NPC. Like a ruler just appeared out of no where and they didn't feel weird? And if they will the ruler the game will be reset right? Even if the vassal was death, they will come back to life also?? Like, confusing. .. like Jackie Chan's confuse face.
Wait so everyone including the “npcs” know that it is a game??? Like they talked about it being a game and mc dying to the ml multiple times.. so the ml knows it’s a game and so does everyone? Or am i wrong