The game is based on the lore, yes. If you like to have things that are not based on lore, that is what mods are for, which that thing you posed is from, a mod. That is what mods are for, if you want those specific kinds of mods. But in base game? They do not belong.

Yes, there are some “easter eggs” in the game. It is still just a sword however in a style what fits stylistically. It’s just a silly name and the “item description” that are the easter egg.

That is vastly different than some anime looking giant hamster thing that people are riding on.

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