So, you probably haven't watched Free Guy, but this is kinda scarily similar You should definitely watch it sometime because it could probably help you develop this game
That aside, I absolutely love the concept. It might be an interesting addition to the lore if some NPCs had discovered glitches in the past that teleported them to some kind of abyss that deleted them from the game that could give glitches a more potentially dangerous reputation and maybe even lead to some fascinating discoveries about the "abyss" (which could just be past the game border or something. It's your game, do whatever you want with it lol )