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I am working on a game, and I was wondering how you made the capsule materials customizable, and the same with the death vfx.

The capsule materials are customizable by just modifying the material texture.

renderer.material.mainTexture = yourTexture;

Death effects are just prefabs instantiated when the player dies. A different prefab is used depending on the death effect. They contain things like particle systems and animators to achieve the effects.