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First off, with that level of regen they should certainly have Type 3 immortality.
Secondly, I don't think the reasoning is legit. From what I see, the reality mentioned there is just the one of the game, which certainly wouldn't be a Low 1-C one, as the Luminous Being is Low 1-C from transcending it. Secondly, one would need to first be destroyed in order to regenerate. Unless the Luminous Being was destroyed by the destruction of the setting, it shouldn't be regen.
Secondly, I don't think the reasoning is legit. From what I see, the reality mentioned there is just the one of the game, which certainly wouldn't be a Low 1-C one, as the Luminous Being is Low 1-C from transcending it. Secondly, one would need to first be destroyed in order to regenerate. Unless the Luminous Being was destroyed by the destruction of the setting, it shouldn't be regen.