I'm not that knowledgeable about Text Manipulation and Plot Manipulation, so I can't give an opinion with 100% certainty, so I'm just going to say what I think about this Magic Books thing, to see if it adds something to the discussion.
About the "Author's Power" thing, isn't this just referring to Magic Books inheriting the powers of their authors, who are wizards?
The description of the Magic Books is as follows
"The search for immortality has caused many wizards to use their dying breath to commit their souls within heavy tomes of parchment. These pages permeate with the dark powers of their authors and so are able to write cruel endings for those valiant enough to confront them. "
So I'm going to say the sentences and say what I understand when I read them.
"wizards to use their dying breath to commit their souls within heavy tomes of parchment" - This is referring to the Wizards, the authors of the books, giving their souls to the scrolls.
"These pages permeate with the dark powers of their authors" - Here it is saying that the pages inherited the dark powers of their authors. Not the power of being an "author", but rather just the power of the authors of books, who were wizards. So they had magical powers
"and so are able to write cruel endings for those valiant enough to confront them." - The last sequel can mean two things to me:
1 - It's just a play on words, since the Books have magical powers and with them, they can make horrible "endings" for those who face them. Just making a reference to them being books.
2 - They really have these "rewrite" powers. But how exactly do they do it? In gameplay they don't do anything much, they just glow one color and do something, like summon werewolves or drain the character's life. But if we go back to the description of the Magic Books, it is said that in their pages there are the dark powers, so I think it's likely that the powers of rewrite are linked to the pages, and in that sense, I agree with
@EldemadeDityjon in being text manipulation. I think it's more likely that the Magic Books are altering their own pages or something.
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Only, does it really matter? There's the whole Grimoire issue, something I think is most relevant and that affects all those with Chaos powers.
The Grimoire is said to be a world(27:18 - 27:24) and
Charlotte says that magically speaking, the real world and the world of the grimoire are the same thing, and then uses examples like the weapons she takes from her books and from the worlds in Brauner's paintings, until even Jonathan talks like it was real.(12:34 - 13:00)
And the whole story of this game is talking about how the monsters inside the book are using the powers of Chaos to alter the Grimorio. They are altering their own world, a world that magically speaking is just like the real world. Wouldn't that be Plot Manipulation?