Actually, that bothered me because I think it's the translators rather than the author. It's been a while since I've read any of the novel, so I may be wrong, but I didn't remember there being any jarring words like that (why would he immediately use "Muggle" if he's come from a completely different world?). I can't remember what he did say, though. Maybe just something like "mortals" (vs immortal cultivator) or something?

You can tell the author has taken elements from other films, manga etc. To make this because most of its not that original.