Loose interpretation is something lots of videogames use on purpose with an "unreliable narrator" POV

• dark souls, bloodborne, elden ring games are pretty much built on it. Most of the lore is given through item descriptions, so tying up the big picture is usually the result of interpretation
• Elder Scrolls games use the unreliable narrator trick a lot as well, the issue is that it's also used by writers to retcon stuff into more generic material. Since it's an open world action RPG with some level of choice they've made the weird decision to have all possible actions canon at the same time, even contradictory ones

The Elder Scrolls even has an alternative current that aims to destroy the concept of canonicity itself, it's called c0da and they're basically trying to turn fan fiction into having the same legitimacy as ingame canon. It's a bit weird but it's led by one of the original writers for the elder scrolls, who happens to be one of the main influences for Morrowind, the best Elder Scrolls game