Do need some answers here (p.s didn't realize it's possible to put images here dead)
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Somehow I messed that up twice oh well
Well, the answer to this question is a lot more obvious and very uncomplicated if you actually know what the "lit" in litRPG stands for.
lit = literary. Literary RPG. As in, it's an RPG in book/webnovel form.
And before you ask, yes, yes this definition of litRPG ABSOLUTELY does include things like SAO, Shangri-la frontier, and Bofuri. Yes, all three of those take place in actual video game worlds. But, the video game they're playing is written about in a story, and we are reading the story. Therefore, it's a litRPG.
It also equally includes all the fantasy worlds with game systems that are not actual video games inside the stories. To qualify as a litRPG, it just has to be a written story accessible in text form, and it includes an RPG system. If it meets those 2 qualifications, it's a litRPG. Absolutely nothing else matters.
If it is not accessible as a book, webnovel, or other narrative text, then it's not a litRPG.
If you want to call anything a fine line between the two, then that "fine line" might be within the realm of TTRPGs, but I think it's pretty clear what's narrative and what's flavor text and setting information for a TTRPG.