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The whole gimmick here seems to be Mario going from the 2-D artstyle of the game to a 3-D perspective so he can do wacky stuff to the scenario, so, higher spatial dimensions are pretty evident, at least.

I don't think it's necessarily Low 1-C, though, considering Mario is just stepping into an invisible direction that exists orthogonal to his world, and not much aside from that. The ability itself seems to be just Spatial Manipulation coupled with Interdimensional range.

Well I'm not saying Mario with just Cutout itself would be Low 1-C, no. Mario with the ability himself has no feats to suggest he can affect the plane he's in. So him with cutout would probably be Unknown

I'm saying the Void would have destroyed this higher dimensional world. If you aren't aware, the Void from Super Paper Mario was basically going to destroy all of existence within the Marioverse. All worlds, all dimensions, all of existence. So it's not that Cutout scales to the tier, it's more so that the Void does. The Void was created by the Chaos Heart, which was used by Dimentio at the end of the game to defeat Mario and his friends. And the only way they could beat him is via the Pure Hearts.

I would love to discuss how it works for you if you're still confused about it.

Elaborate on that, yeah. More clarification is always good.

I can elaborate more on the void itself after the e3 presentation. But just to be clear, you did see ALL of the scans right?

I did, yeah.

Ok so. To elaborate on why I think the Cutout World is Low 1-C, It is stated to transcend time and space by both the Deep Cuts Toad and Huey. We know they aren't crossing/going outside of space and time because the kanji "koeru" makes it very clear that they are being superior to time and space. We can also tell that they aren't referring to size/scope, but rather another axis as Mario is just shown to "leave" his flat universe without being larger than it. There's other things that support the concept that I guess my blog is missing (such as not elaborating the infinite superiority part), so I can probably get to it later.

But the main point is that the Cutout World is a higher spatial dimension that is superior to space and time.

(Sorry for the late response)

With that in mind, the Void in SPM was going to destroy the entire Mario cosmology.
This was created by the Chaos Heart.

Dimentio uses this same artifact for the purpose of destroying everything and creating a new existence, which Mario's team use the Pure Hearts to stop him

Basically, all who scale to this would become tier 1 due to the fact that the void would destroy all of existence, including the cutout world.