Okay, here’s a bit more of a detailed explanation.
Alright, let’s start with the structure. In Bayonetta lore there are three main universes, and one universe in between. These are called the Trinity of Realities, and were created after a cataclysmic event.
I’m sure you already know, but they are layered on top of each other like a
stack of cards. Because of this, the three universes share one spacetime due to their unique connection to each other.
In the game, Jubileus created what Kamiya describes as the
“Origin of the universe”Essentially when she was at her peak, she was creating the
same thing. It’s the foundation for their current multiverse. Inside of this sphere Jubileus created multiple dimensions, which are
confirmed universes.
Time passes there, because Kamiya says it’s to give a depiction of heaven and earth being created. Meaning she’s actively creating a universe. My take is that since these spaces are universes with time, but are not inside of the trinitys unique layered space time structure, they are different space times.
This makes sense to me, since the trinity shares a unique balance with one another. One reality can’t be stronger than the other, or the world will fall apart. Nor can other realities be introduced.
Muspelheim is another universe inside of Bayonettas lore, it’s description goes as follows: (using Japanese translations)
“ I have received information about a new doorway. I can't disclose my sources, but it seems to be a portal to a place called Muspelheim, a primordial world separated from the flow of time. “
Two important things are the use of the word “World” which are used to describe universes in Bayonetta, along with it being separated from the flow of time. Meaning it either has no time, or is separated from the main time. But if we look further into its description:
“ Over there, they say, angels, demons, witches, and wise men are fighting an endless battle. The reason why it is never-ending is because no matter how hurt they are, or how many times they die, the next day their wounds will be healed, the great power of life will light up again and they will be driven to the battlefield once again. “
it says the next day, meaning that days passes there, which means time does as well. So wouldn’t it make sense for them to be saying that’s it separated from the main 3 universes time flow? Especially since it’s not in the structure diagram.
This is my copy pasted explanation sent to Ultima, can elaborate more if needed.