From what I understood from this chapter is that if a character finds a new or blank cassette tape and puts it in the player, there memory stays safe and they can remember throughout the game. But once it is removed they forget their memories and once it is put back in again they can once again regain their memories from what they remember last. Which is why in the latest chapter where Bada inserted the cassette tape he found, the dude in the hoodie regained his memories and he guessed that his cassette tape has been removed before and was inserted back that's why he can remember again.
I don't think I understand the significance of the tape properly.
Was is it not properly explained or did I not pay attention