The game records data. Internally and externally.

All players of the game have their data collected and stored like in a "child library".

All these recordings of people exist in ghost rooms in the game's engine.

If a player were to be setup as a host, this data could be implanted through the game and bring this old player to life again. The host is prepared via hypnotic techniques so they keep the PlayStation running through this process.

Tiara was meant to become Belle (a previous player) but this did not work. The PlayStation was switched off when Tiara QUIT the game, placing her avatar in the Quitter's Room which remains as a corrupted data entry, not in a ghost room and not as an active player.

Jill, Thomas and Daniel (the family, proprietors of the channel) have set Paul up to become the host and be "reborn" as Care so they can find out what happened on November 11th 1997.

Care is not Paul.

Despite the sex difference, Paul remembers the kids playing the game downstairs, we know Care was part of this group. He has an indirect memory of Care being a different person. This would also imply Paul never played the game with them and why he is not in the child library. Yes, he does mention "his room" but he never refers to the child library and the rest of his speech, in this instance, is talking about the real world and finding the game.

Basically, Paul was the perfect host, he was connected through the family so he would be invested enough to keep playing and exploring while the game did the work to get him to a state in which Rainer could remotely execute the ghost room data drop on him. Rainer's message to Care is talking to her like she was a child, when her data was collected.

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As to where the real Care, Marvin and Belle are... I'm not sure. I can only propose that if they were hypnotised by the game and were not kept alive, I assume Jill is supporting Paul, then they could die from dehydration but Care would of had to of been neglected for some time for this to happen. I wonder if Rainer tried to "rebirth" Michael based on his recordings but perhaps because of the early prototypes of the game he played, it didn't work which meant Rainer could not bring Michael back to life making him definitely and definitively dead, hence why he's no longer in his ghost room.

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From comment below; "I suspect it was inadvertent. The kids' data was recorded for testing purposes of a real game but Rainer soon realised the power of his software which was not only able to record but recreate. This was used to capture Marvin and force answers from him and then later to rebirth these data packets as people using a host. "