[DreamSword]

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Originally Posted by Enchilada645

1st is a mental space, and the 2nd is we know the two are somewhere other than the main setting of where Dynazenon took place because this happens after they leave.

1st is also the representation of the innards of the Kaiju, of which we see plenty, and also establishes the inner workings of the person involved. IE, a digital space. The second is also the same set piece as seen in the first anime. And given how Kaiju are still born via the desires of people within Dynazenon, and both Knight and The Second able to directly connect with everything in the show, it's not any sort of stretch to see it as another digital landscape.

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I'm talking about someone outright saying "Hey this is a digital world".

Gridman never outright said it either, but it was obvious from the context. If we're going solely by literal statements, then Gridman would be in a real world setting as well, even though it very much obviously isn't.