Maybe there roles are really reversed. How Jesse is in Moritat is similar to Law in real life, and Law is actually a representation of Jesse. It seems like there are 2 Laws, the one from his memories or flashback and the one he interacts with. So maybe the Law in real life is kind of a shitty guy, and is using Jesse (his servant) as a test subject. Maybe Jesse is not happy in his (real life) situation with Law, so Law "created" this other reality for Jesse to see if he could make him believe it was real.
Wow... even though this plot you gave is really complicated already, I have a feeling that it won't be this simple...( ̄∇ ̄")
I was reading and then the thought popped into my head that he may be dead already (which would suck, but also be very cool). Maybe like Plato's concept of reality he has to find out what the truth is, which ultimately is the discovery of how he died. I'm really hoping that isn't the ending, but I needed to express some of the thoughts going on in my head right now. Either way reading this makes me think far to much.
or maybe that chester is dead but he transferred his own memories and emotions into this virtual reality and have jesse undergo moritat so that he could still keep jesse to himself or to carry out his revenge or something
My feelings are a bit ambiguous about the MC, I feel like I need more chapters to decide if I like her or not. Although so far it seems promising.