It's genuinely just a very fancy church that somehow ended up with its own passport office.
Fun fact: Vatican City has the highest per-capita crime rate in the world, almost entirely from tourist pickpocketing.
It looks like a Minecraft knockoff from 2011 but somehow has more bosses than most RPGs.
Fun fact: Its 2D world contains over 5,000 unique items, more than most open-world 3D games.