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“Why” appears to be an unanswerable question. It fades into infinite regress. It’s happening because it appears to be really happening. What more can you say? Fire is hot. Water is wet. The inner angles of a triangle add up to 180 degrees. All points on the circumference of a circle are equidistant from the centre. 2 + 2=4. Two different things can’t occupy the same space at the same time.
The physical world generates a non-physical world and the nonphysical world of thought directs actions in the physical world. This has been discussed for over two thousand years, the interaction of material and immaterial. How do thoughts occur from interaction of molecules or chemicals and electrical impulses in the brain? What is the relationship of binary logic or algorithms to software content? The body is material. Thoughts are immaterial.
What is the nature of appearances? The smiling face in the computer video is an image or representation of somebody. There’s not an actual person in the computer. The interaction with the image of a person on the computer is abstract. A person appears to be there, but if you reach out to touch the face, your hand will encounter glass or plastic.