The first video looks fake as a mirror videos would always have the camera aligned and any minute angle change would change the framing.

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Yeah sure, but 2 years ago, video generation was barely even a thing. Of course they aren't perfect, but the major problems are disappearing at an incredible rate.

On top of that we have models that can generate game environments (ie. simulations) from images or video:

https://video2game.github.io/