I'm also coming down on the side of them still being on the severed floor the whole episode somehow. I don't know exactly how, but it's the only thing that makes sense.
Forgetting the logistics of getting outies to agree to it, Milkshake told them to remove the Glasgow Block from Helena, not to turn on the Overtime Protocol, if they were truly outside.
Plus a giant part of Petey's map from s1 was a "team building" section.
And they didn't really seem to be affected by the cold. And the TV appearing from nowhere and working without being plugged in. And Irv being in the middle of the lake with no footprint trail out there.
I'm fairly certain it's some sort of trick or vr or simulation or something.
don't forget the 'literally can't be real' janky versions of each of them that pointed in various directions
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we're all buds~jc~ <DeathChicken> you are my hero for being the first person to cite National Geographic in Mercs