Is that why sometimes I enter a completely empty clearing only to turn around and have 15 dogs that weren't anywhere to be seen suddenly biting my ass? Because A-Life is busted?
It’s not online/offline like the internet, it’s just referring to how the AI is doing open world stuff. A-life has two modes. Online which is a bubble around you where enemies are rendered with models and doing things in the world, and offline where they’re basically just numbers on a spreadsheet. They have simulated activity offline, like walking around, looting things, sleeping, etc. but aren’t actually spawned into the world until your online “bubble” is nearby.