Trippy! The connection to the jam's theme seems tenuous and a lot of the elements feel like they'd be more at home in a high fantasy/sci-fantasy kind of game like D&D or the old Gamma World. However, it's very creative, I'll give you that.
There's a lot here that I feel needs at least some explanation. Are things like the crystal angels real, or are the part of the game? Why are there actual squirrels everywhere but no bears?
What's actually happening when someone dies in the simulation and "respawns"? I could see e.g. blacking out for a period of time and then regaining consciousness, but why does dying in the game move you somewhere different in the real world?
The design isn't too bad. The two colours you've picked clash a bit... one easy trick is just to pick two that are opposite each other on the colour wheel. So that blue you've got can go with something more orange. Or that purplish-red can go with teal. I would also try to avoid having all caps for text longer than a single sentence, as it's harder and slower to read; the variable heights of lower case letters help people recognize words by shape, whereas all caps you pretty much have to read letter by letter.
Overall, a whole planet full of people gradually succumbing to virtual reality addiction and losing touch with their real environment is good fodder for Mothership. The treatment is just a bit too silly and insufficiently thought-out for my taste. However, it looks easy enough to run for someone who does find it up their alley.