A world within the Palace created by Suguru Kamoshida. The Phantom Thieves of Hearts plan a heist to steal Kamoshida's heart in order to prevent the protagonist's expulsion. Shadow Suguru initially imprisons the protagonist and Ryuji Sakamoto within, where they meet Morgana, who explains the other "students" in the jail cells and Suguru's harem are Cognitive existences who are not actually alive, but replicas born from how Suguru views the volleyball team-ie, as slaves to do his bidding and increase his prestige, or sex objects.