If I remember correctly, Bada doesn't remember what he was like before or how he got there. My guess is that he might have been playing the game in real life, and suddenly woke up in it(as an NPC without his memories)
Then just like any survival game, he respawned. After going through the cycle, maybe he gradually started to pick up on strange things and tried to find a way to get away from the killer.
While looking around the house, he probably discovered the book with the saved endings and realised "Yeah, that's literally how I died last time." Then put the puzzle pieces together, this is just a quick theory tho.
I could be completely wrong, cause those plot twists are INSANE

The only thing holding me back from thinking Bada is an awakened NPC is how he knew the game preformed badly IRL, but how does he only remember that? And where would he have gotten the idea oh horror game rather than i’m in a time loop or something