So let me explain the Dream SMP world first, you could say this is more than an AU than anything but it isn't at the same time.
Let me explain
The characters in the book would not be the streamers them selfs but their lore characters.
They live in Minecraft yes but they only know of the world Minecraft.
There are separate species of humans or hybrids in this world of Minecraft, these species are categorized as:
-Observers-
+Neutrals+
÷Hardcore players÷
×Players×
=Admins=
Gods are also a species but they're very powerful so they're in their own category.
Hybrids can be mixtures from both hostile mobs and passive mobs, hostile mobs count as Zombies, Piglins, withers, skeletons, endermen, etc.
Passive mob hybrids can go from goats to parrots.
All these players have the ability to create 'servers'
Servers are classified as different worlds that the players could survive in.
To some, this might not make sense and to others, it might so I have no clue on how to feel about this AU