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In the physical layer, pillars of lights can connect the various worlds in a random way. There are other means of connection like staircases that work in a strange way, but there seems to be some mysterious law that operates all this.
Digital World's Physical Layer: It was the totality of the Digital World in the beginning, it was the limit of the Network created by humans, it is a vast chaotic desert that sometimes connects with the other layers through pillars of light.
@TheWindragon24 Since that interview, I'm waiting to see him using Parallelmon in a game, I think that he would even try to use the unused Digimon created by Neo lol
Therefore, if they produce a game in which anime characters do not appear, the target consumers would be disappointed. So in games like Lost Evolution, they decided to focus on Digimon like Agumon or Gaomon who had a active role in Digimon Savers
Now when he started working on Digimon, he was Mito's assistant in the production of Lost Evolution
During that time discussions about Xros Wars started and then after LostEvo, they decided to create Super Xros Wars as an anime tie-in, and Habu was called in to be the producer
LCD Toy Setting: As the name makes clear, Virtual Pets work with this scenario. Just like most games in the Digimon World series, Digimon Story Lost Evolution and of course Digimon Tamers.
But there are also works where the "true concept behind Digimon" matters. Products such as Digimon Frontier and Savers uses the Digimon as characters and their society, groups and mythology in a way where they being or not computer virus doesn't matter
But in Tamers is important to know the LCD Setting to understand the symbol that the Four Holy Beast are as deities to show that the Digimon culture evolved as living beings above the perspective of their creators, this being the importance of the Wild Bunch as Digimon creators
For example, understanding the "Fantasy Setting" helps to understand Oikawa backstory, is one of the main points behind Takenouchi Haruhiko and helps to understand the responsibility of the Four Holy Beasts as the protectors of the multiple worlds
Later in Digimon Tamers the idea that the Four Holy Beasts are "gods created by the Digimon themselves" was used by Konaka to explain more about the background of Digimon Tamers and about the Digimon as man-made programs that evolved beyond our control