tiber septum basically became a god, and the dwemer accidentally became the skin of the giant robot that tiber septum used to become god (because dwarf elon musk played the wrong melody on a sick ass god bone instrument)

it's implied they cease to exist as a person when they zero-cum, since it's basically "wait, im just a freakin construct in a dream, i don't exis--"

CHIM is different bc its like "not real? i think therefore i am my dudes. if this is a dream that means i can shoot poo poo lasers out of my third eye heheheheh"

its also implied that elder scrolls exists in an endless chain of dreamers creating universes and those universes creating dreamers (godheads) that make their own universe in their dream and so on

in semi-lore some dude marries vivec and has like dream sex with her and they birth the next godhead