Are lives immersion breaking?

I am eager to start Fantasy Life as my first slow life RPG but I’m coming off of Coral Island where its skill levels are the equivalent to most lives. Are lives just the same as skills in any other life sim like Coral Island?

For example, I play as just a farmer in Coral Island but I’m still able to level up my combat, mining, etc. This feels less immersion breaking than changing my appearance every time I perform an action in Fantasy Life. Is there a lore reason for all the lives switching? Am I just overthinking a simple gameplay mechanic?