Possibly, but our knowledge of physical laws is subjective and imperfect. By the time you get to Frauchiger-Renner naive realism starts to look quite threadbare, so I'd be a little more tentative about assuming we have much of a clue about what's going on.

It's just as likely - far more likely IMO - that we're physically incapable of understanding physical laws and physical systems on their own terms.

Most of the world believes in crazy shit. Religion is mostly fantasy. Believing All powerful beings aka gods are crazy in every context and really mental institution level insanity except in the context of religion.

Humans are crazy. Thats just how it is.