"It from I" has Infinite Magic

In the "It from I" framework, macroscopic spacetime, gravitation, and the Standard Model emerge from the thermodynamic limit of a discrete relational network of M_2(C) observer algebras partitioned into an Observer (O = M (x) B) and an exterior World (W). A foundational postulate of Paper I (Tier 2 Postulate 1) is that scaling the cosmic boundary partition (B_cosmic (x) W) to the idealized thermodynamic limit (N_B, N_W -> infinity) drives an Araki-Woods phase transition from a discrete Type I algebra into a continuous Type III_1 von Neumann factor. Recently, Shaposhnik et al. (2026) proved two foundational theorems linking the emergence of Type III von Neumann factors on qubit lattices to the quantum-information-theoretic resource of nonstabilizerness ("magic"): (i) exact stabilizer systems have flat entanglement spectra and can never yield Type III factors in their central decomposition, and (ii) for bipartite Araki-Woods infinite tensor products of finite Type I (ITPFI) factors, the limiting algebra is of Type III if and only if the locally optimized min-relative entropy of magic diverges (sup_N D_min,LO^(N) = infinity). In this note, we establish the two-way conceptual and mathematical bridge between the theorems of Shaposhnik et al. and the "It from I" architecture. First, we show how the "It from I" substrate evades the stabilizer no-go theorem via non-local spectral antiflatness across its Kubo-Martin-Schwinger (KMS) boundary state, while distinguishing this bipartite spectral magic from local single-cell and link-phase magic quotiented out by local unitaries. Second, we show that Theorem 5 of Shaposhnik et al. sharpens Tier 2 Postulate 1 of Paper I into a three-part condition--comprising a horizon normal-mode (ITPFI_2) ansatz, divergent locally optimized magic (sup_N D_min,LO^(N) = infinity) for the Type I/II -> Type III crossover, and normal-mode gap incommensurability to select Connes' Type III_1 factor over a uniform Type III_lambda Powers factor. Conversely, we note that the constitutive O (x) W partition, the ultraviolet area gap a_min, and the 3-channel {e_1, e_2, e_3} modular intersections of Paper I supply a physical interpretation of the bipartition, a fundamental UV cutoff, and 1+3D Lorentzian dimensionality to complement abstract lattice-magic models. Finally, we examine how the AQFT Split Property for finite local observers (B_local) corresponds to the Type I freeze-out of magic across the intermediate split factor N and how the asymptotic Heat Death of spacetime relates to semifinite Type I/II representations via both Schmidt-spectrum equilibration and the observer crossed product.